A Connecticut assessor values a single-family home at $400,000 fair market value and assesses it at $280,000. The homeowner believes the fair market value is only $350,000. If the homeowner successfully argues the lower market value before the Board of Assessment Appeals, what will the new assessed value be?
Correct Answer
A) $245,000
Connecticut law requires property to be assessed at 70% of fair market value (CGS § 12-64). If the Board of Assessment Appeals accepts the homeowner's argument that the fair market value is $350,000, the new assessed value must be recalculated at 70%: $350,000 × 0.70 = $245,000. The 70% ratio is mandatory and applies to the corrected market value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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