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In other words ...Market Value = the price that would prevail under competitive, <br />open market conditions. <br />Q4. How does the assessor determine market value? <br />State law requires that the value and classification of real estate be established as <br />of January 2 each year. The Assessor's Office works throughout the year to <br />estimate the market value of each property for the following January 2. <br />Views property <br />Minnesota Statute 273.08 requires that the Assessor is responsible to review <br />every parcel under his/her jurisdiction at least once every five years to make sure <br />that the information used to establish market values is accurate and up to date <br />(view the statute on the State of Minnesota Web site). The appraisal interval <br />may be shorter due to review appraisals requested by the homeowner, ongoing <br />new construction, or if the appraiser feels there may be an error in the property <br />information for a particular property. All new construction, alterations or <br />improvements will be viewed in the current year. <br />Gathers information <br />The appraiser gathers information on all characteristics of the property that affect <br />market value, such as size, age, quality, basement finish and extra features, such <br />as fireplaces, extra baths, walkouts, etc. <br />Estimates value <br />The property characteristics are entered into a computerized system. The <br />computer aids the assessor in estimating the property value. Information from <br />actual sales is used to update your market value. The market value estimated by <br />the assessor should be at, or very close to, the amount the property would sell for <br />if placed on the open market. The State Board of Equalization requires the overall <br />level of assessment to be between 90% and 105% of market value. <br />Analyze Sales <br />Each year the assessor analyzes actual sales of property in each community. <br />Preceding the January 2nd assessment date, sales in a 12 month time period <br />(October 1st to September 30th) are reviewed to determine what properties have <br />sold for on the open market. These sales are used as a guide to help determine <br />"what similar properties would likely sell for" if they were placed on the market. <br />Notification <br />A Value Notice is mailed around mid March each year to each property owner. <br />The assessment on January 2 forms the basis for the following year's tax. That is, <br />