Why has my property value increased so much?

Property values have risen significantly across the area due to market trends and recent sales data. The reassessment reflects current market conditions, which may show higher property values compared to previous assessments. We used several hundred sales from the local market area to develop our assessments.

Does a higher assessed value mean my property taxes will go up?

Not necessarily. Your tax rate is set by your local government and depends on budget needs. An increase in assessed value doesn’t automatically mean an increase in taxes.

What is the difference between market value and assessed value?

Market value is the price your property would likely sell for in an open and competitive market, based on current market conditions, comparable sales, and other relevant factors. It reflects what a buyer is willing to pay for your property under typical circumstances.

Assessed value, on the other hand, is the value assigned to your property by the local assessor for tax purposes. In Virginia, the assessed value is generally intended to reflect 100% of the fair market value, as required by state law.

It’s important to note that while every effort is made to ensure assessments are accurate, individual properties may be over or under-assessed. This is not intentional but can result from natural variance or noise in market data, inefficiencies in model building, or differences in how specific property characteristics are captured during the assessment process. These factors are inherent in any mass appraisal system used to assess a large number of properties.

If you believe your property has been over or under-assessed, you are encouraged to file an appeal with supporting evidence, such as comparable sales data or a recent appraisal.

What is the assessment level in Virginia?

For the majority of real estate parcels, the intended assessment level is 100% of fair market value, as required by state law. However, there are exceptions for certain property types that are assessed using different methods or criteria. These exceptions include:

1. Agricultural, Horticultural, Forest, and Open Space Land

• Properties enrolled in the Land Use Assessment Program are assessed based on their use value rather than fair market value.

• This program provides a tax incentive to preserve land for farming, forestry, and conservation.

2. Public Service Corporation Properties

• Utilities and other public service properties are assessed by the Virginia State Corporation Commission.

• The assessment method may differ from the local assessment process.

3. Certain Exempt Properties

• Properties owned by government entities, religious organizations, or non-profits may be partially or fully exempt from taxation.

• These exemptions are often codified in state law or granted through local ordinances.

4. Historic Properties

• Some historic properties may qualify for special tax credits or reduced assessments if they meet specific preservation criteria.

5. Affordable Housing

• In some cases, affordable housing developments may be assessed based on income capitalization (income generated by the property) rather than fair market value

How often are reassessments conducted?

Reassessments are typically conducted every few years, depending on local regulations. Localities in Virginia can choose to conduct reassessments every year, or up to every 4 to 6 years depending upon the population in the locality. Warren County, VA conducts reassessments every 2 years.

How does the reassessment impact exemptions I currently receive, like elderly or disabled exemptions?

Exemptions are applied separately from the reassessment. Contact the Commissioner of Revenue office at 540) 635-2651 if you have questions about exemptions.

Does the reassessment consider recent renovations or changes to my property?

Yes, recent renovations or changes that add value to your property are typically reflected in the reassessment. If you have added anything or torn down anything in the recent past, these things should be accounted for in the assessment. However, even if you have not made physical changes to your property the value could change up or down based upon market influences. Over time the physical, environmental, governmental, and social forces at play in the market will lead to changes in market value.

What should I do if I believe there is an error in the property description for my property? How can I get them corrected?

We recommend that you review your property data online at https://gis.vgsi.com/warrencountyVA/ If you believe there are errors, such as incorrect square footage or features such as bathroom count, contact our office via email at warrenreassessment@professionalassessor.com

Are agricultural, commercial, or rental properties assessed differently than residential properties?

Most properties will be assessed at 100% of their fair market value. Some exceptions are properties in the land use program (which have their assessment based upon the agricultural production value instead of market value), some exempt properties, and some affordable housing properties that are verified to be in the HUD Low income housing tax credit program.

Different property types may use distinct valuation methods based on local laws and market conditions. All of methods used sales data. Some methods and property types may rely heavily on income and rental data, or estimated construction cost less depreciation.

Why did my neighbor’s assessment change differently than mine?

Property assessments vary based on factors like size, location, age, improvements, renovations, garage vs no garage, and recent sales. Even nearby properties can differ significantly. Also, we could have discovered a discrepancy in the records for your or your neighbors previous assessment which we corrected for the current or updated assessment.

Below are links to some documents that have been published by the International Association of Assessing Officers.

You may find these documents helpful for understand assessments.