How is a property’s market value determined?

A property’s market value is determined primarily by analyzing recent sales data of comparable properties, often referred to as "comps." This approach takes into account various factors such as location, size, condition, and features of both the subject property and the comparable sales. By examining these recent transactions, assessors can gauge what buyers are willing to pay in the current market, which reflects the property’s fair market value.

The importance of this method lies in its reliance on actual market activity. Real estate markets are dynamic, and values can fluctuate based on numerous external factors such as economic conditions, interest rates, and buyer demand. Thus, the use of recent sales data provides a concrete basis for determining value rather than relying on speculative estimates or outdated information.

While other options may play a role in the assessment process, such as coordination with zoning boards or tax history, they do not directly reflect the property's current market value as comprehensively as recent sales data does. Online property evaluation tools can offer insights but are often based on algorithms or limited data sets that may not accurately capture the nuances of local markets.