Property values are based on market values that fluctuate with general market conditions such as recent sale prices, supply and demand, demographic changes, and changes in tax laws. Per Minnesota state law (see Chapter 273), as property values change in the marketplace, those changes must be reflected in the assessor’s estimated market values.
In addition to market changes, significant physical changes made to your property can also affect your market value. For example, if you were to add a garage to your home, the market value may increase. However, if your property is in poor repair, the market value may decrease over time. The assessor does not increase values based on routine maintenance alone.
In some areas, market conditions may lead to increases in market values without any physical changes to the property. Other areas may experience declines. All factors are considered in estimating the value of property.