Q: How does an assessor determine market value?
A: There are two ways to estimate fair market value: Comparative market analysis and appraisal. For most non-farm property, the Township Assessor estimates the fair market value of the property based on recent sales of similar property, comparative market analysis. For new construction, the assessor may do a physical inspection of the property, appraisal.
Q: Why has my home’s assessed value not gone down as fast as real estate sale prices?
A: Real estate assessments are based on the three-year average market values and sale prices. So, if the market drops quickly, it will take the assessment several years for the average value to drop to the new, lower level.
Keep an eye open for more Q & A’s about property assessments and information in future editions of the Sun Day. And look at www.suncpac.org for access to your Model Report.
