Market Value Determination
Value and classification of real estate must be established on January 2 each year. The Edina City Assessing Division works throughout the year to estimate the market value of each property for the following January 2. Approximately every fifth year, a City Appraiser will view the property. Any property that had a building permit issued in a given year is viewed and its new value calculated for January 2 following the construction.
Under Minnesota Statute 273.08, the Assessor is responsible to review every parcel under his/her jurisdiction at least once every five years to make sure that the information used to establish market value is accurate and up to date.
Each year, if your district is scheduled for review, you will be mailed a notice letting you know that appraisers will be working in your neighborhood in the upcoming weeks. When the appraiser gets to your neighborhood, he or she will knock on your door to let you know why he or she is there. He or she will ask to inspect the interior of your home and to walk around the exterior in order to make sure the information on your property is up to date and accurate. In addition, he or she will be happy to answer any questions you may have at that time.
If you are not home when the appraiser initially stops by, he or she will post a yellow note to your door indicating that a representative of the Assessor's Office had been there and asking you to call to set up an appointment for an interior inspection of your home. While he or she is there, though, he or she will walk around your home to verify all exterior data for accuracy.
It is our goal to assure an equitable assessment that will be fair to all property owners - that is why it is so important that we review all properties in each district.
The appraiser gathers information on all characteristics of the property that affect market value, such as size, age, quality, basement finish, and extra features, such as fireplaces, walkout basements, etc.
The characteristics collected by the appraisers are entered into a computerized appraisal system. Information on actual sales are verified and updated to reflect market trends, values are calculated based on sales comparisons. The market value estimated by the appraiser in this way should be 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 90-105% of market value. The City of Edina and Hennepin County consistently meet the State Board’s requirement.
Each year the assessor's office analyzes actual sales of property in the City of Edina. Sales in a 12-month time period preceding the January 2 assessment date, (from October 1 to September 30) are reviewed to determine 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 City of Edina Assessing Division mails a Value Notice to each property owner in March of every year. The current year's value forms the basis for the following year’s tax.