2009
Revaluation
Mansfield
What exactly is a Revaluation?
The dictionary of Real Estate Appraisal Third Addition (1993) published by the Appraisal Institute defines revaluation as a “…mass appraisal of all property within an assessment jurisdiction to equalize assessed values…” In other words, the goal is to eliminate assessment inequities that may have taken place since the last revaluation.
How is it accomplished and how often?
It is accomplished by updating assessments of real property to reflect their fair market values as of the date of a revaluation. Pursuant to Section 12-62(b) of the CT General Statutes, commencing October 1, 2003, all municipalities must implement a revaluation every five years. The date of Mansfield’s previous revaluation was October 1, 2004.
What does the updating of assessments entail?
In summary, this requires:
- An analysis of selling prices of approximately one year prior to the October 1, 2009 revaluation date, during which, the features that have motivated buyers and sellers in Mansfield are identified and quantified.
- From this analysis, valuation models are created.
- The valuation models are then statistically tested in order to ensure they conform to the State of CT Performance Based Revaluation Standards of accuracy and uniformity in estimating fair market value.
- Income and expense information provided by commercial property owners is utilized and statistically tested as part of the process in determining commercial values.
What is fair market value?
Fair market value, according to The American Institute of Real Estate Appraisers, is “the most probable price for which a property will sell in a competitive market with buyer and seller each acting prudently, knowledgeably and for self interest and assuming that neither is under undue duress.” This precludes foreclosures and sales between family members.
Should I expect my property to be valued the same as what I purchased it for, as long as the sale was within twelve months preceding October 1, 2009?
Not necessarily. Property types, despite similarities, tend to sell within a “value range” versus one specific price. The reason for this is because the motivations of buyers and sellers may differ from sale to sale. Therefore, in accordance with the definition of fair market value, the goal is to determine “the most probable price,” which tends to be in the middle range of recent sales of similar properties. The result is an appraised value that could be higher or lower than what you actually paid for it.
Do property values change uniformly from one Revaluation to the next?
Not usually. Fluctuating economic conditions, along with local factors, influence the values of property class types in different ways. It is not unusual for some to experience a rather dramatic increase in value, while others see a more moderate change.
Is the town going to collect more taxes because of the Revaluation?
No. A revaluation redistributes the total tax burden more fairly, but does not increase or decrease tax revenue.
A final word of caution…
It is premature to attempt to predict where Mansfield’s property values will be come October 1, 2009. We estimate that the peak of the market was in 2007 and that the market has slowed considerably since then. However, it remains to be seen whether or not property values will ultimately fall below what they were on October 1, 2004, the date of the last revaluation.
Hopefully, the information provided here will take some of the mystery out of the process. Now that the revaluation is getting underway, watch for periodic updates from the Assessor’s Office.