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1. What is annual reassessment?

A reassessment is a systematic review of all properties within Loudoun County to determine a current market value as of January 1. Annual assessments keep pace with changes in the market. During a reassessment, all property values are examined and adjustments are made where indicated by physical or market evidence.

2. What is the effective date of my assessment?

Annual assessments are effective January 1 of each year and the values are based on sales which occurred prior to that effective date, relying most on the sales taking place in the prior year.

3. 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 buyer and seller are well informed and neither is under pressure to buy or sell.

Transfers of real estate are analyzed annually. Nearly 95% involve sales of residential properties. Sales for previous years are also reviewed when warranted. Information is gathered from buyers, sellers, and real estate professionals. The selling prices are then compared to the assessed values to arrive at an assessment / sales ratio. The county is required by law to annually assess at fair market value as of January 1 of each year.

4. What sales were used to determine my assessed value?

The sales used to determine assessed value will vary from parcel to parcel based on certain characteristics such as location, age, style, quality of construction, and condition. Property owners can go on the public record and look at the most recent sales comparable to their parcel by following this link to the parcel database. Once you have opened the property record, find the “Neighborhood Sales” link on the right side of the screen.

5. How can a property be assessed for more than its recent purchase price?

Real Estate may be assessed for more than the sales price because the assessment reflects "fair market value." Fair market value is not necessarily the price paid for a piece of real estate, but rather, what it is worth on the real estate market. A sale may be below fair market value, for example, if the owners are in financial distress and need to sell quickly, lowering the price beyond what they might otherwise accept. Selling a property at an amount simply sufficient to cover the mortgage would be another example of a distress sale not at fair market value.

6. Why did my assessment change?

There are many reasons for a change in property value. The most obvious reason is that the property itself has changed, i.e., the addition of a garage or deck, or the property has been damaged or destroyed. The most frequent reason for a change in value is that a movement (either up or down) has occurred in the real estate marketplace.

7. Why did my structure value go up? I didn't make any changes to my house.

Property can appreciate in value if market desirability increases, even without physical improvements. Structure value can also increase if physical improvements that may have been in place for some time are newly discovered and added to the property record.

8. Why did my house go up at a higher rate than my neighbor’s house?

Sales activity and price fluctuation within the real estate market vary based on property type and from neighborhood to neighborhood. Consequently, the percentage of assessment change is also variable depending on various criteria such as changes in property characteristics and the type of structure.

9. Why did my assessed value change more than reported in sources like Zillow, etc?

Published rates usually encompass broad geographical areas and may include all types of properties. Your assessment is based on valid sales in your neighborhood that occurred between January 1 and December 31, 2019 (and in some cases, earlier). Those sales can be reviewed on the website.

10. Why did my assessment go up more than the percent change advertised in the local newspapers for my market area and property type?

Newspapers sometimes publish a summary of the average sale price in an area that compares one time period to another. While this may give a general indication of a percentage change in sales prices, it should not be compared to any percentage change in your assessment, for the following reasons:
The time period shown may not match that of the January 1st effective date of assessment.
Areas covered are typically a zip code or other large area and do not reflect different changes within individual neighborhoods. In addition, property types may have been combined and do not take into account differing percentage changes between single family, townhouse, and condominium types of residential dwellings.
A mean or median percentage change can be overly influenced by the types of properties sold during the specified time period. For example, percentage changes can be misleading if more lower priced homes sold during the beginning of the time period versus more higher-priced homes at the end.

11. What does land value represent and why did it change?

The land value represents the market value of the land as if it were vacant with no permanently affixed improvements. In appraisal terms, land is the surface of the earth together with everything under its boundary and everything over it.

Land values can change year over year due to changes in the real estate market. Sales of vacant, undeveloped land are analyzed on an annual basis to determine if the land values accurately reflect fair market value.

12. Why do property values have separate land and building values and why did they change? I own a condo; why do I have a land value?

Virginia Code requires every parcel to have separate land and building values.

13. Is there a law that prevents assessments from changing more than a certain amount from year to year?

The Constitution of Virginia requires real estate assessments to represent fair market value. There is no provision to limit the amount of change from year to year.

14. Is there any effect on real estate values for major floodplain acreage?

An adjustment for major floodplain is a case-by-case basis and can depend of characteristics such as zoning, development potential, and location. A floodplain adjustment may not be warranted if it does not impact the utility or the highest and best use of the site. If a value reduction is applied it is generally based on the diminished utility or site improvement restrictions caused by the floodplain.