I recently purchased my home for a price which is different than the valuation for this year. How is this possible?
The real estate market is not a “perfect market” and price is not always equal to value. Similar properties usually do not sell for exactly the same price because the motivations of buyers and sellers are not always similar. Similar properties usually tend to sell within a “value range” rather than for one specific price. According to the definition of fair market value, your value represents “the most probable selling price” and tends to be the middle of the range of what similar properties have recently sold for. Therefore, your appraised value could be higher or lower than what you actually paid for your property.

In addition, state laws (statutes) require that real estate be assessed at 100% of market value as of January 1st immediately preceding the current fiscal year. This is the assessment date. The sales considered in order to determine the market value are those that took place during the calendar year prior to the assessment date. If your sale took place subsequent to the assessment date, it will be in the group of sales analyzed in the preparation of the following year’s valuations, and is not relevant to the current year’s valuation.

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1. Where can I find the detail on my property?
2. What do the assessors look at when determining an assessment?
3. How do I know if my valuation is fair and equitable?
4. How can my assessed value increase (or decrease) when I did not do anything to the property in 5 years and I am not selling the property?
5. What will happen if I put an addition on my property? Are the actual construction costs of a new home used to determine the new assessment?
6. Why did my valuation change from the prior year’s valuation more (or less) than my neighbor’s?
7. I think my assessment is out of line with my neighbor’s property, whose property is assessed lower. What do I do if I want my assessment to be as low as theirs?
8. I recently purchased my home for a price which is different than the valuation for this year. How is this possible?