A municipality uses an equalization ratio, or rate, to assess property values within its jurisdiction. An equalization ratio equals a property's assessed value divided by its market value. A municipality typically uses the assessed value to calculate property taxes, whereas the market value is the amount for which the property would likely sell on the open market. A property's assessed value is typically lower than its market value. Calculate your property's market value based on the equalization rate in your area and your property's assessed value.
Step 1
Determine the equalization rate that your municipality uses to assess your property value. You may find the rate on the municipality's website or by contacting the property tax collector's office. For example, assume the equalization rate is 50 percent in the municipality where your property is located.
Step 2
Determine your property's assessed value. You may find this on a recent property tax bill or by contacting your local property tax collector's office. In the example, assume your property's assessed value is $175,000.
Step 3
Divide your property's assessed value by the equalization rate to calculate the property's market value. In the example, divide $175,000 by 50 percent, or 0.5, resulting in a property market value of $350,000.