FISCAL YEAR 2008 REVALUATION
The Board of Assessors is required by Massachusetts law to value all real and personal property in the community as of each January 1st. Since Concord has adopted Chapter 653 Article 40 of the Acts of 1989, new construction and improvements built between January 1 and June 30 are also included. Assessed values are based on the "full and fair market value" of property as determined by real estate sales occurring during the previous calendar year. The new assessed values appear on the tax bills that are received by property owners the following January.
The Board is working on the Fy08 property valuations, which are based on calendar 2006 property sales. To do this the Assessors subject the arms-length sales that occurred in 2006 to a statistical examination based on market area, style of house, age of house, effective area, size of lot and sale price to see what changes the market has shown. They study these changes and determine how to modify the factors that create property values. These new factors are then applied to all properties.
What is a Revaluation?
A Revaluation is the triennial update of all real estate assessments in town required by the Department of Revenue (DOR). Each year updates and adjustments are a means of equalizing the tax base by bringing all property to a uniform percentage of current value. During a revaluation year the process is a lot more intense. The DOR works with the Assessors and their staff over many months to insure that the town is following legal and consistent methods for property valuations and that all property owners are paying their fair share of the cost for community services. The following are answers to some common questions.
Will property values change?
Most likely, yes. However, not all property values will change at the same rate. Market value has changed more for some neighborhoods and property types than for others. One purpose of a reval is to make sure that the assessed values reflect the changes that have occurred in property values. Another is to verify the accuracy of property descriptions.
What is market value?
Market Value is the amount that a willing buyer will pay for a property to a willing seller, both acting knowledgeably and prudently and neither being under any obligation to buy or sell. For FY08 the calendar year 2006 sales are used to set the values.
What sales were used to compare to my home to arrive at my value?
This question, although common, highlights one of the clear differences between the revaluation appraisal process and the more well-known “bank” appraisal. Although the appraisal concepts are the same and the results similar, the process is different. Assessments are based on an analysis of Concord’s entire real estate market for a specified period of time. This study guides the setting of valuation parameters that are used to calculate the property values town-wide. No particular sale or group of sales was used to determine the value of your property, but all of the 2006 sales were included in the analysis that set the parameters.
If values increase does that mean the town is going to collect more taxes as a result of revaluation?
No. A revaluation does NOT raise revenues. The budget is controlled by the Town Meeting and Proposition 2-1/2. Individual assessments may rise or fall depending on the characteristics of the property. The purpose of a reval is to value all property by the same standards at the same time to create an equitable distribution of the tax levy.
I have recently completed an improvement to my property. Will the actual construction costs be considered?
Your construction cost is a historical figure that may or may not reflect the current market value of your property. It is only one element that will be considered in determining fair market value. Generally, improvements that increase the market value of a property will increase the assessment.
Will my assessment go up if I repair my property?
Normal maintenance will help retain the market value of your property, but generally will not significantly affect your assessment.
How can my assessment change when I haven’t done anything to my property?
Economic conditions, change in tax laws, people’s preferences, are continually changing and will influence the value of real estate. As property values change in the marketplace, those changes will be reflected on the assessment roll.
How and when will I be notified of the change in my assessment?
All property owners will be mailed a letter with the new proposed assessment, in the fall of 2007. The letter will also have instructions on how to schedule and prepare for an informal hearing if you do not agree with the assessment.
What is an Informal Review?
When a property owner has a question about the proposed valuation, they will be asked to make an appointment to discuss the valuation process, verify the data, and address any concerns regarding the assessment.
Want to Learn More?
There are two openings for Associate Members on the Board of Assessors. These positions participate in the activities and discussions of the Board, but do not vote. If you’ve ever contemplated getting involved, please contact the office at (978) 318-3070 or any member of the Board of Assessors to find out more. These positions are a good opportunity to “test the waters” to see if you would enjoy involvement in this way. Appointments are made by the Town Manager with the approval of the Board of Selectmen.
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