Step 1- Market Value
True and Full Value
The starting point of the assessment of real property is determining true and full value. For property classified as residential or commercial, true and full value means its market value. Market value is the price a property would bring if it were offered for sale in the open market for a reasonable length of time and purchased by a willing buyer from a willing seller, both parties being prudent and having reasonable knowledge of the property and neither being under undue pressure to complete the transaction.
Step 2- Appraisal
The City Assessor’s office is responsible for valuing each taxable parcel of real estate within the City of Grand Forks. This involves making an appraisal of each new property or re-appraising an existing one. Each year a certain number of properties are reappraised. Once an appraisal is made, it is used as the basis for real estate taxes for that year.
Step 3- Value
Whenever property sells, the sale price is compared to the assessor’s appraised value to determine a sales ratio and also to check how equitable various types of property are being valued. This sales ratio allows the assessor to determine overall how the values compare to the current market conditions. This sales information is analyzed and used to help create a new Cost Manual each year. The Cost Manual is applied to all homes in the City to help create equity within the market. The value assigned to each property is based on the determination of what each property would be worth if it were offered for sale in the open market.