Dear Paul,
I realize this topic has about as much excitement as watching C-SPAN on a Friday night with a first date 😍 – But it actually matters.. One of the most common questions I get during a home valuation is:
“How does the town come up with my property’s assessed value?” Fair question, so I did a little digging….
Fireside Chat – This Friday | 8:00–9:00 AM
We’re back to our regular time. Swing by Chatham Perk for coffee, real estate chatter, and whatever else is on your mind.
How the Town Determines Your Assessed Value
• Towns use a method called Mass Appraisal to estimate your home’s value - based on recent local sales, not just your property.
• The Massachusetts Department of Revenue sets the rules, but each town applies them slightly differently based on local market trends.
• The value is based on what your home might have sold for as of January 1st of the prior year. (For FY2025, that means January 1, 2024.)
• Only arm’s-length, market-based sales are used - not family transfers, foreclosures, or off-market deals.
• Your assessed value is the combination of land value and structure(s), each calculated separately.
• This number is used for tax purposes - it’s not an appraisal and doesn’t reflect today’s market value.
Behind the Scenes: What the Town Does
1. Reviews and verifies the previous year’s sales.
2. Groups homes by type, neighborhood, and features.
3. Runs models to ensure values are fair and consistent.
4. Adjusts for location, style, age, condition, and lot size.
5. Estimates land value directly or subtracts it from recent sale prices.
6. Applies the final model to all properties - sold and unsold.
Towns also re-certify values with the state every 5 years, with annual tweaks in between.
Bottom Line
Even if your home hasn’t sold, its assessed value is based on what comparable properties did - and it’s designed to be fair and consistent across the board.
If you’re thinking of making a move - or just curious about your home’s value - now’s a great time to connect. And if you want to talk striped bass, The British Open (begins tomorrow) or anything Real Estate related over coffee? Even better.
Hope to see you Friday morning at Chatham Perk (home of the BEST coffee in town!).
Best,
Paul Borde'
Realtor® | Coastal Cape Cod, MA
License: 9585841 (MA)