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1. What is mass appraisal?

Assessors must value all real and personal property in the community to their full and fair cash value. Mass appraisal is the process used by every Massachusetts city and town to create the property assessments. Assessments are based on an analysis of Merrimac's entire real estate market for a specified period of time. This study guides the setting of valuation parameters that are used to calculate the property values town-wide. It differs from the more well-known “bank” or fee appraisal.

Although the appraisal concepts are the same and the results similar, the process is different. No particular sale or group of sales is used to determine the value of your property, but all of a certain calendar year’s sales are included in the analysis that set the parameters for the next fiscal year.

2. What is market value?

Market value, or full and fair cash value, is the most probable price for which a property will sell in an open, competitive market that a willing buyer will pay for a property to a willing seller, both acting knowledgeably and prudently and neither being under any obligation to buy or sell. Sales such as foreclosures and family sales are not considered to be “arms length” or fair market transactions.

3. When my neighbor’s house sells, will their price determine my assessment?

Not necessarily. As explained in the previous question, sales are analyzed town-wide. An example of what could be relevant is if there were several sales in an area indicating that the assessments were too low compared to the sales prices.

4. How often does the valuation of properties change?

Every year the Assessors subject the arms-length sales that occurred in the prior calendar year to a statistical examination based on market area, style of house, age of house, effective area, size of lot and sale price to see what changes the market has shown. The tables used in the Computer-Assisted Mass Appraisal (CAMA) system are adjusted so that the median assessment of the sales sample is within 10% of 100% of market value, and the dispersion of the assessments to sales ratios in the sample are within state guidelines. These new factors are then applied to all properties for the new Fiscal Year.

Every 3rd year the Department of Revenue (DOR) requires each city or town to conduct a revaluation. This is a year-long process during which the DOR examines every phase of the assessing operation before certifying the values. During the 2 years in between revaluations the Assessors may change the values if sales activity so indicates. These yearly updates are called Interim Year Adjustments. There was an adjustment to the values for FY 2009.

5. How is the calendar year different from the fiscal year?

Massachusetts cities and towns operate on a “Fiscal Year” basis. The calendar year runs from January 1 through December 31. The fiscal year goes from July 1st through June 30. The assessment date is January 1 preceding the fiscal year. That is, for Fiscal Year 2009 the assessment date is January 1, 2008.