Market value overview
Why your estimated market value is important
In Minnesota, property taxes provide most of the funding for local government services. Every property's share of taxes is based on its estimated market value, property use and the local government budget. Estimated market value is the price a property would sell for on the open market.
Determining estimated market value
The City of Minneapolis Assessor's Office provides assessments that are both accurate and fair. The assessor's role is to reflect the real estate market and set estimated market values by following market trends. The assessor establishes the value and classification of all property on January 2nd of each year, for taxes payable the following year.
Key information that the assessor uses to estimate market value includes location, size, age, permitted updates and renovations. For commercial, industrial and apartment properties, the income and expenses generated by the property are an important factor.
The assessor compares your property to recent sales of similar properties to determine the estimated market value. Estimated market values are not based on an individual sale, but a review of many sales resulting in a most likely price. This is mass appraisal.
Market value changes
Some Minneapolis neighborhoods are seeing large increases in value from the previous year. Prices have gone up due to low interest rates, low housing supply and high demand. Charts below show the typical increase in estimated market value in Minneapolis neighborhoods.
Appealing your assessment
If you have questions or concerns about your assessment you should contact the assessor first. If you do not come to an agreement on your value or classification with the assessor, other formal appeal options are available.