What is the main factor determining a property's assessed value?

The main factor determining a property's assessed value is the local market demand. This reflects how much buyers are willing to pay for properties in a given area, which directly influences real estate values. When demand is high, property values typically rise, leading to higher assessments. Conversely, if demand decreases, property values and assessments may also decline.

Local market demand encompasses various factors such as the economy, employment rates, interest rates, and overall attractiveness of the area. This market-driven approach ensures that assessed values are aligned with current buying and selling trends within the community.

While factors like size, condition, and age of a property can influence its value, they are often considered in the context of market demand. Thus, they are important but not the primary determinant when it comes to assessed value. Understanding the dynamics of local market demand empowers assessors to make informed evaluations that reflect the true value of properties in their jurisdiction.