Market value of a property is an estimate of the price that it would sell for on the open market on January 1st of the year of assessment. This is sometimes referred to as the “arms length transaction” or “willing buyer/willing seller” concept.

To estimate the market value of your property, the Assessor generally uses three approaches. The first approach is to find properties that are comparable to yours which have sold recently. Local conditions peculiar to your property are taken into consideration.

The assessor also uses sales ratio studies to determine the general level of assessment in a community, in order to adjust for local conditions. This method is generally referred to as the MARKET APPROACH and usually considered the most important in determining the value of residential property. The second approach is the COST APPROACH and is an estimate of how many dollars at current labor and material prices it would take to replace your property with one similar to it.

In the event improvement is not new appropriate amounts for depreciation and obsolescence would be deducted from replacement value. Value of the land then would be added to arrive to the total estimate of value. The INCOME APPROACH is the third method used if your property produces income such as an apartment of office building. In that case, your property could be valued according to its ability to produce income under prudent management; in other words, what another investor would give for a property in order to gain its income. The income approach is the most complex of the three approaches because of the research, information and analysis, necessary for an accurate estimate of value. This method requires thorough knowledge of local and national financial conditions, as well as any developmental trends in the area of the subject properly being appraised since errors or inaccurate information can seriously affect the final estimate of value.

State law requires that all real property be reassessed every two years. The current law requires the reassessment to occur in odd numbered years. Changes in market value as indicated by research, sales ratio studies and analysis of local conditions as well as economic trends both in and outside the construction industry are used in determining your assessment.

If you disagree with the assessor’s estimate of value, please consider these two questions before proceeding, as outlined below:

• What is the actual market value of my property?
• How does the value compare to the similar properties in the neighborhood?

If you have any questions about the assessment of your property, feel free to come in and discuss it with the assessor.

You may file a written protest with the Board of Review, which is composed of three or five members from various areas of the assessing jurisdiction. The Board operates independently of the assessor’s office, and has the power to confirm or to adjust either upward or downward any assessment.

If you are not satisfied with the decision of the Board of Review you may appeal to the property assessment appeal board or to the district court within twenty days after adjournment of said Board, or twenty days after May 31st whichever is latest.

Iowa law provides for a number of exemptions and credits, including Homestead Credit and Military Exemption. It is the property owner’s responsibility to apply for these as provided by law. If the property you were occupying as a homestead is sold, or if you cease to use the property as a homestead you are required to report this to the assessor in whose jurisdiction the property is located.

Click here for a list of important credit and exemption dates.

January 1: Effective date of current assessment.

April 2 through April 30 inclusive: Protest of assessment period for filing with the local Board of Review.

May 1 through adjournment: Board of Review meets each year.

October 10 through November 15, inclusive: Protest period for filing with Board of Review on those properties affected by changes in value as a result of the Director of Revenue and Finance Equalization Orders (odd numbered years).

January 1 through December 31: Period for filing for Homestead Credit and Military Exemption. One time filing is provided, by statute, unless the property owner is (1) filing for a Military or Homestead Credit the first time; (2) has purchased a new or used home and is occupying the property as a homestead as of July 1st: or (3) owner was using as a homestead but did not previously file.

If the home qualifies and the property owner files on or before July 1, the exemption will go into effect for the current assessment year. If the property owner files after July 1, the exemption will go into effect the year following the sign up.