What Is Revaluation
A revaluation is a comprehensive update of assessed property values across an entire jurisdiction, typically conducted every 4 to 8 years, to bring assessments in line with current market conditions. Unlike a reassessment of individual properties, revaluation involves systematically reappraising all or nearly all parcels in a county or municipality at the same time.
When Revaluation Happens
Most states mandate revaluation cycles to maintain assessment uniformity and compliance with the requirement that properties be assessed at a uniform percentage of market value. New York, for example, requires reassessment of all properties every 6 years in most counties. Illinois typically operates on 4-year cycles. The specific timeline depends on state law and local ordinance.
Revaluation triggered by significant market shifts, demographic changes, or legal challenges can occur outside the normal cycle. When property values in a jurisdiction drop substantially, as happened in 2008-2012, counties may conduct extraordinary revaluations to correct inflated assessments from the prior cycle.
How Revaluation Affects Assessment Ratios
Revaluation directly impacts the assessment ratio, which measures the relationship between assessed value and market value. If your county assesses properties at 50% of market value and a revaluation occurs, the assessor uses current comparable sales data to recalculate both your assessed value and the jurisdiction's overall assessment level ratio.
A poorly executed revaluation can create disparities. Some counties emerge with assessment ratios as low as 40% or as high as 70%, indicating unequal treatment across properties. This is where comparable sales data becomes critical for your appeal. If your property's assessed value is calculated at 60% of market value while similar properties in your area are assessed at 50%, you have grounds to challenge the revaluation on uniformity grounds.
Appraisal Methods Used in Revaluation
Revaluation relies on three standard appraisal approaches:
- Sales Comparison Approach: The assessor analyzes recent comparable sales within your market area. Properties sold within 12 months that are similar in size, condition, and location establish benchmark values. This method carries the most weight in revaluation work.
- Cost Approach: The assessor calculates replacement cost of the structure plus land value, accounting for depreciation. This method is more heavily used for newer construction during revaluation cycles.
- Income Approach: For commercial and rental properties, the assessor capitalizes net operating income to derive property value. During revaluation, this method reflects current market cap rates and rental rates.
Most revaluations weight the sales comparison approach at 60-80% of the final value conclusion for residential properties, especially in active markets with sufficient comparable sales data.
Board of Review Hearings After Revaluation
After a revaluation is completed and notice is mailed, you typically have 30 to 45 days to file an appeal with your county's board of review. This is your first formal step in challenging a revaluation assessment.
At the board of review hearing, prepare three elements: a recent appraisal or broker opinion of value; comparable sales data showing properties similar to yours that sold for less; and documentation of property condition issues that may not have been captured during the mass appraisal process. The board reviews whether the assessor applied the appraisal methods correctly and uniformly across the jurisdiction.
Approximately 15-25% of homeowners who file board of review appeals during revaluation cycles receive adjustments, typically ranging from 5% to 15% of the assessed value.
Revaluation and Exemptions
Revaluation recalculates the full market value of your property, but this affects the base from which exemptions are calculated. If you receive a homestead exemption that reduces assessed value by a fixed amount or percentage, revaluation increases the full market value to which that exemption is applied. The exemption amount remains fixed, but its effective impact shrinks as the total assessed value rises.
Common Questions
- Does revaluation always increase my assessment? No. In declining markets, revaluation typically lowers assessments. In appreciating markets, assessments generally increase, though the percentage increase varies. The key factor is whether your property appreciated faster or slower than the overall market during the revaluation period.
- What if my property didn't sell recently? Can I still appeal a revaluation assessment? Yes. You can challenge the assessment using comparable sales of similar properties in your area, an independent appraisal, or documentation showing why the assessor's valuation methods were applied incorrectly to your property. You do not need a recent sale of your own property to file a valid appeal.
- What happens if I disagree with the board of review decision after revaluation? You can appeal to state tax court or the state's property tax tribunal, depending on your state. Deadlines are strict, typically 30 to 60 days after the board of review decision. This step requires more formal evidence and often involves expert appraisal testimony.