Determining Market Value
Market value is the price a willing, knowledgeable buyer would pay for a piece of property if it were offered for sale on the open market. Assessors do not create this value; they interpret what is happening in the marketplace. Thus, values shift with economic conditions and with changes to the property.
To determine market value, assessors inspect properties to record the existence and character of improvements that contribute to the value. Sales information is collected on all types of property, and features such as location, size of the parcel, improvements, and amenities are analyzed to estimate what buyers would pay for the property.
Local sales impact local values. The assessor uses actual sales of similar properties in your neighborhood or similar neighborhoods to estimate what buyers would pay for your property.
Further information is available on the Minnesota Department of Revenue website:
How the Assessor Estimates Your Market Value