Minnesota Statute 272.03 defines "market value" as "the usual selling price . . . at the time of assessment". It is "the price that could be obtained at a private sale or an auction sale, if the assessor determines that the price from an auction sale represents an arms-length transaction. The price obtained at a forced sale shall not be considered". In other words . . .
Market Value = The price that would prevail under competitive, open-market conditions.
How does the Assessor determine market value?
State law requires that the value and classification of real estate be established as of January 2 each year. The Property Assessment Department's appraisers works throughout the year to estimate the market value of each property for the following January 2 assessment date.
- Physically Inspects Property
Every fifth year, an appraiser will physically review the property, both the interior and exterior. If the owner is not home, a door tag is left explaining the inspection process. The appraiser will still perform an exterior review at that time. In addition, all new construction, alterations or improvements will be viewed in the current year.
- Gathers Information
The appraiser gathers information on all characteristics of the property that affect market value, such as size, age, quality, basement finish, and also extra features such as fireplaces, extra baths, walkouts, etc.
- Estimates Value
The property characteristics are entered into a computerized system. The computer aids the appraiser in estimating the property value. Information from actual sales is used to update the computer model and set the table schedules which are used to update your market value. The market value estimated by the assessor should be at, or very close to, the amount the property would sell for if placed on the open market. The State Board of Equalization requires the overall level of assessment to be between 90% and 105% of market value. Assessors in Carver County consistently meet this standard.