Determining Market Value
The Dakota County Assessor's Office determines the property estimated market value and classification on Jan. 2 of each year.
Estimating values
Assessors are required to view each parcel of real estate at least once every five years to appraise its market value. Property values change with economic conditions.
In addition to market changes, physical changes affect value. This includes:
- Clearing land and installing utilities
- Remodeling buildings
- Adding an addition, porch or deck
- Finishing a basement
Classifying property
The Assessor's Office also determines the classification, or use, of each parcel. For instance, property can be residential homestead (owner occupied), residential non-homestead, agricultural or commercial. Each classification is taxed at a different percentage of market value.
Appraiser credentials
- Appraisers employed by the Assessor's Office are professionals, with stringent training and experience requirements set by the state .
- The Minnesota State Board of Assessors governs and administers licensure of appraisers.
Dakota County insists on additional training in the areas of management, organization and customer service.
Steps to determining market value
Any property that had a building permit issued is viewed and its new value estimated for Jan. 2 following the construction. In addition, every property in the County is viewed at least once every five years.
All items that have an impact on market value, such as size, age, quality, basement finish and extra features, such as fireplaces, walkout basements, etc.
Data is entered into a mass appraisal system. Actual sales are entered to reflect market trends, and the computer calculates the property’s value.
Each year, the assessor studies actual sales of property in each community. Sales in a 12-month period before the Jan. 2 assessment date (from Oct. 1 to Sept. 30) are reviewed to find out what properties have sold for on the open market.
These sales are used as a guide to help determine what similar properties would likely sell for if they were placed on the market.
The State Board of Equalization requires the overall ‘level of assessment’ to be between 90–105 percent of market value. Dakota County consistently meets the State Board’s requirement.