Frequently Asked Questions
What is an annual reassessment?
A reassessment is a systematic review of all properties within the City of Norfolk to determine a current market value as of a specific period in time. Annual assessments keep pace with changes in the market. During a reassessment, all property values are examined and adjustments are made where necessary.
Why do an annual reassessment?
By conducting an annual review of the current market value for all properties, the City is able to achieve a fair and equitable distribution of the tax burden, since property owners pay their share of the tax burden in relation to the values of all properties.
What authority does the City have to conduct a reassessment?
The Code of Virginia requires that all real property be assessed for taxation at one hundred percent (100%) of market value. By local ordinance, reassessments must be conducted annually.
Why are real estate taxes necessary?
Properties are appraised and taxed in order to provide revenue for local services such as schools, fire and police protection, public parks and other public benefits. Property owners thereby absorb their fair share of the cost of these benefits in proportion to the amount of money their individual properties are worth.
What is fair market value?
Fair market value is the amount of money a buyer would be willing to pay a seller for a property offered for sale in an open market, over a reasonable period of time, where both the buyer and seller are well informed and neither is under pressure to buy or sell.
What is the effective date of my assessment?
Annual reassessments are effective July 1st of each year and the values are based on sales which occurred during the calendar year immediately prior. Changes to assessed values because of new construction, new improvements, alterations, additions, etc. are effective the first day of the next quarter after completion.
When are buildings under construction assessed?
All new improvements, new construction, renovations, alterations, etc. are subject to being assessed on a quarterly basis when substantially complete. On July 1st, a partial assessment will be placed on any construction not yet complete. The partial assessment will reflect a percentage of the anticipated total value upon completion.
How is property appraised?
To find the value of any piece of property, the assessor must first know what similar properties are selling for, what it would cost to replace the property, what rent it may earn and what are the attributable expenses. Using these facts, the assessor can then go about determining the property value in one of three different ways.
- Sales Comparison Approach – the first method compares a subject property to others recently sold. These prices, however, must be analyzed very carefully to get the true picture. One property may have sold for more than it was really worth because the buyer was in a hurry and would pay any price. Another may have sold for less money that it was actually worth because the owner needed cash right away and the property was sold to the first person who made an offer. When using the sales comparison approach, the assessor must always consider such over-pricing or under-pricing and analyze many sales to arrive at a fair value. Size, quality, condition, location and time of sale are also important factors to consider.
- Cost Approach – a second way to value a subject property is based on how much money it would take, at current material and labor costs, to replace your structure(s) with ones similar. If your property is not new, the assessor must also estimate how much value has been lost to wear and tear, or other factors such as obsolescence. The adjustment, called depreciation, is then deducted from the replacement cost. Finally, the assessor estimates the lot value and adds this to the depreciated cost of the structure(s) to arrive at the total property value.
- Income Approach – the third way is to evaluate how much income a property would produce if it were rented as an apartment complex, office building or shopping center. The assessor must consider operating expenses, taxes, insurance, maintenance costs, and the return most people would expect on those types of properties. The net income from operation of the property is then capitalized into a value estimate by using a rate providing a return on the property investment. This method of estimating value is rarely used to appraise single family residential properties.
What causes property values to change?
A property’s value can change for many reasons. The most obvious is that the property itself changes. For example, a bedroom, garage or swimming pool is added or part of the property is destroyed by flood or fire. The most frequent cause of a change in value is a change in the real estate market. When market value changes, so does the assessed value. Value is created by transactions in the marketplace. It is important to remember that the assessor does not create value. The assessor simply has the legal responsibility to study those transactions and appraise property accordingly.
Do all assessments change at the same rate?
There are differences between individual properties as well as between neighborhoods. In one area, the sales may indicate a substantial increase in value in a given year. In another neighborhood, there may be no change in value, or even a decrease. Different types of properties within the same neighborhood may also show different value changes. For example, one story houses may be more in demand than two story houses, or vice versa. Older homes in the same area may be rising in value more slowly than newer homes. There are numerous factors to be considered by the appraiser for each property type. It is the appraiser’s job to determine if and how a property’s characteristics are affecting the neighborhood’s market value. Some of the factors which can affect value are location, condition, size, quality, number of baths and garages, among others.
How do trends in real estate affect local assessments?
General trends in property values are often discussed and written about. As part of the assessment process, the Office of the Real Estate Assessor reviews data about real estate trends in the region and in the City. However, we rely primarily on data from the sales of properties similar to the group of properties that we are valuing. As part of these analyses, all properties are placed into neighborhoods that each have specific geographic and economic influences. It is the sales within each neighborhood that most affect the final values of properties.
What is the role of computers in the assessment process?
Just as in many other fields, computers are useful in the assessment process. Assessors are trained to look for relationships between property characteristics and market value. By coding these characteristics and studying sale prices, assessors can estimate value by developing formulas and computer models. Computers are much faster and are capable of advanced analysis in this area. But despite these capabilities, common sense and assessor judgment are always required to verify assessments. Staff appraiser most familiar with the neighborhoods and properties conduct a final review of all computer generated assessments.
What will happen to my assessment if I improve my property?
Generally speaking, improvements increasing the market value of a property will also increase the assessed value. The following are typical items that will increase the assessed value of your property:
- Added rooms or garages
- Substantial modernization of kitchens or baths
- Central air conditioning
- Fireplaces
- Extensive renovations or remodeling
Will my assessment increase if I repair my property?
Proper and regular maintenance will help retain the market value of your property. Generally, your assessment will not be increased for individual minor repairs such as the following; however, a combination of several of these items could result in an increased assessment:
- Repairing or replacing the roof
- Repairing porches and steps
- Repairing original siding
- Patching or repairing interior walls and/or ceilings
- Exterior painting
- Replacing electrical fixtures
- Replacing the furnace
- Exterior awnings and shutters
- Weather stripping, screens, storm windows, doors
- Exterior landscaping including lawns, shrubbery, trees, flowers
Can the assessment on my property be changed even if the assessor has not been inside my property?
To make a proper assessment on a property, it is desirable for the assessor to view both the interior and exterior of the building(s). The assessor keeps records regarding the physical characteristics of each property in the City of Norfolk. Even though a staff appraiser may have been unable to inspect each property, all assessments are still reviewed each year, based on the existing records and the sales of similar properties in the neighborhood.
What is a field review?
To provide the most accurate current market value, all properties should be visited every four to six years. Qualified appraisers from the Office of the Real Estate Assessor review the exterior of all structures to verify the data currently on file.
Currently, in the City of Norfolk, residential field reviews are conducted from the public right of way (sidewalk or street). Interior inspections are conducted if requested by the property owner or if warranted due to a building permit.
Can I make an appointment for a field review?
If you would like for an appraiser to visit your property and conduct a full review, please call the Office of the Real Estate Assessor at (757) 823-1343. An appointment will be scheduled at your convenience.
How can I be sure the information used to determine the value of my property is correct?
General information regarding each property is posted on the website. If you would like additional information regarding your property, you may call the Office of the Real Estate Assessor at (757) 664-4732 and request a copy of your Property Record Card. If you find incomplete or incorrect information, please contact this office.
What do I do if I think my assessment is incorrect?
If you have just received your annual assessment notice and you disagree with the value, you may schedule an informal appeal with this office by calling (757) 823-1343. Requests for informal appeals with staff appraisers or the assessor will be accepted through end of business on May 8th.
Questions, complaints and requests regarding property characteristics may be submitted to the Office of the Real Estate Assessor at any time; however, in order to appeal any unresolved assessment matters to the Board of Review, formal appeal applications must be received no later than the last day of May. The Office of the Real Estate Assessor is available to address taxpayer concerns throughout the year. However, in the event that the appeal deadline for the Board of Review is missed, the hearing will be scheduled for the following year. Deadlines for both informal and formal appeals may be extended on a case by case basis as determined by owners’ extenuating circumstances.
