The Assessor's Office estimates market value and determines the classification of all real estate property in the City.
Market value is the price that could be obtained if a property is sold under competitive, open-market conditions. Assessors are required to value property at 100% of market value.
Assessors view a property and verify or gather new information.
Value and classification of all real estate property must be established on January 2 each year. The Assessor’s Office works throughout the year to estimate the market value of each property for the following January 2 assessment. We apply one (or more) of the three approaches to value to determine property market value. The three approaches are: Sales Comparison Approach, Cost Approach and Income Approach. Although all three approaches are considered, one approach may be better suited than the others. For example, the Sales Comparison Approach is typically used for Minneapolis residential property.
Assessors compute the value.
The Assessor’s Office uses a computer assisted mass appraisal system to determine market value.
Each year the assessor analyzes actual sales of property in each community. Information on actual sales is updated to reflect market trends, and the property’s value is calculated. The estimated market value should be very close to the amount the property would sell for on the open market. The State Board of Equalization requires the overall level of assessment to be between 90-105% of market value.
- All property is revalued each year as of January 2.
- The estimated market value represents the theoretical selling price for your property.
- If you disagree with the estimated market value amount on your Valuation Notice, you may contact the Assessor’s Office to discuss your concerns.
The Assessor’s Office works to accurately value and classify all Minneapolis properties in a fair and equitable manner.
Our procedures for field property reviews are as consistent as possible among our assessing staff. Note appraisal or mass appraisal will always involve an assessor's judgment.
- Components that make up the estimated market value are developed from cost schedules, sales data and other sources.
- Land typically accounts for 20-25% of total property value (lakeshore or other property with a location amenity will exceed that percentage).
- Quantitative factors are items such as property square footage, number of bathrooms or other features. Most of the value is the basic square footage of the home.
- Qualitative variables are more subjective in nature. They include the location or condition of the property.
- A basic valuation model for a residential property is: (Square Feet of Building Area) ($ per Square Foot per Mass Appraisal Schedule) = Base Value plus additional features on a flat cost basis less all forms of depreciation plus site value equals market value.
Last updated Mar 15, 2019