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1. Why does Portsmouth assess at "market value"?

The Code of Virginia requires that the Assessor’s Office assess all real property at 100% fair market value.

2. What is fair market value?

Fair market value is the price a property will bring when it is offered for sale by one who desires, but is not obliged, to sell it and bought one who is under no necessity of having it.

3. What affects market value?

The location of a property will affect value; a location near or on the waterfront may add value, whereas, a location near a smog-ridden industrial plant may reduce value. The supply and demand for particular types of property will also affect market value. Physical characteristics such as size, type of construction, age and condition, all have an effect on property value.

4. How does the Assessor’s Office obtain information?

The appraisal staff inspects property year-round. They gather information on various aspects of the property pertinent to value: i.e.: type of construction, square footage, age, physical condition, type of heat, number of baths, fireplaces, location, etc. Inspections are done when building permits are issued, if requested by a property owner, and through a general neighborhood review. Analyses of sales data are also followed up with staff attempting to contact owners to verify the listing and sale of the property.

The Assessor’s Office maintains records listing the property characteristics and condition of each property. These records are public information and may be reviewed any time during office hours: Monday through Friday; 8 a.m. til 5 p.m.

5. How is property value determined?

Recent sales prices in your neighborhood will be used as a guide to property values in your area. Value is derived by comparing similar properties of the same quality, age and condition, etc. which have sold in the neighborhood. Sales are reviewed to determine if the transfer was an arm’s length transaction. Sales that would not be considered arm’s length would be; foreclosure, auction, sale between related parties, condemnations, and sales resulting from divorce.

6. What if there are no recent sales in a neighborhood?

The sales from a comparable area to the neighborhood would be used to determine value. These would be areas that are similar in location, housing style, condition, age, and price range. This rarely happens as there are numerous properties sold throughout the city annually.

7. Why do assessments change each year?

Assessments are conducted annually to ensure that recent market transactions are reflected in your assessed value of your property. Sales prices dictate market value. When the market values change in your neighborhood, so does the assessed value. The Assessor’s job is to follow the market trends set by ongoing sales. If homes in your area are selling higher than their assessed value, then the assessment will likely increase. Should homes begin to sell for less than their assessed value, then the assessments will likely decrease. People make value by their transactions in the market place.

8. Why do some properties sell for more or less than their assessed value?

The appraisal staff attempts to constantly review property values so that all assessments are fair and equitable. Sales prices are always fluctuating due to many reasons: from the cost of financing to how knowledgeable a buyer may or may not be. These factors all may have an influence on price. The staff does not always have the opportunity to visit and inspect every property within the city. In today’s working world, it is not always possible to make a contact with each property owner. Appraisals are not an exact science. With proper documentation and information, should the Assessor find a property assessed too high or low, he/she will correct it.