Richmond Real Estate by edl74406

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									                                             2009 Richmond Average Real Estate Sales Prices compared to the
                                             2009 Average Assessed Values for the same properties
                              $700,000
                                                                        $633                                           Graph Key
                                      $600,000                                                                                Average 2009 Richmond Real Estate Sales Prices
Average Real Estate Values




                                                                      $631                                                    Average 2009 Richmond Real Estate Assessment Values for the
                                      $500,000                                                                                same properties sold in 2009
                                                                                                                               How close Richmond Real Estate Value Assessments were when it
                                      $400,000                                                                                 came to actual sales of that property (shown as percentage ratios)

                                                                                               $288                           $279                                                            $277
                                      $300,000                                     $244                         $271                         $256             $256            $254
                                                                                                $285                                                                                                                   $217
                                                         $224                                                $267             $275                                                              $275        $181
                                      $200,000                                      $243                                                      $249            $254            $254
                                                       $213                                                                                                                                                             $212
                                                                                                                                                                                                        $176
                                      $100,000
                                                       95.38%         99.67       99.31        99.05%        98.30%          98.55%         97.44%         99.06% 100.01% 99.29%                          102.82% 97.75%

                                             0
                                                    Jan-09          Feb-09        Mar-09      Apr-09       May-09           Jun-09          Jul-09        Aug-09          Sept-09            Oct-09       Nov-09      Dec-09

                                                                              Month-Year
                       The graph above demonstrates that the 2009 Richmond real estate market maintained at sales price levels
                       close to, or slightly above, the Richmond Real Estate Assessed Values for the same properties.
                       The graph includes 2009 Richmond Real Estate Sales, in which the buyers and sellers bought and sold at fair mar-
                       ket value. In the real estate industry, the term “arm’s length transaction” is used, which means that both parties
                       in the sale are buying at fair market value. An example of a sale not at fair market value would be: a situation
                       where a mother sells her daughter her house for $100 or a price that is way below its value.



                                         2009 Richmond Average Real Estate Sales by price range

                                                                                                                                                                                                                                                                                                       2010
                                        65

                                        60                                                                                                    59                                                      Graph Key




                                                                                                                                                                                                                                                                                      Richmond
                                        55                                                                                                                                                                Under$200,000
                                                       53                                                                                    56                                                           $200-$300,000
                                        50                                                                                                                 47                                             $300-$400,000
                                                                                                                              46                                                                          $400-$500,000
                                        45
                                                                                                                                                     46
                    Number of Sales




                                                                                                                                                                                                          Over $500,000
                                        40                                   39                         38


                                                                                                                                                                                                                                                                                      ANNUAL REAL ESTATE
                                        35                     33                                                                      37
                                                                                     32
                                                                                                                    29
                                        30
                                                  26                                                                                                                                                        26

                                                                                                                                                                                                                                                                                      ASSESSMENT PROCESS
                                                                                                                                                                      25                24
                                        25                                                    21                                              22
                                                                          21                            25          25                                21
                                        20                                                                                                                                                      19
                                                  17          16                                                                18
                                                                                               19       15                                   15                      19             18
                                        15
                                                   16                        13      11                                                                                                         12
                                                                12                                                                                                                                           11
                                        10
                                                              10             6           9     8
                                                                                                                    9
                                                                                                                        8
                                                                                                                                   8          11          8
                                                                                                                                                                      6
                                                                                                                                                                                    9
                                                                                                                                                                                                10
                                                                                                                                                                                                                       9                                                             Citizens of Richmond, Virginia U.S.A.
                                                                                                         4                                                                                                           4
                                                                                                                    7



                                                                                                                                                                                                                               Richmond City Council Public Information/srs 2.5.10
                                         5                                           3                                             6                      7               5         3            6
                                                   4           4             4                 3         5                                                           4          2                           1       2                                                                                    Provided by the
                                         0                                               0                                                                                                         1       0        0 1
                                                 Oct-08      Nov-08     Dec-08     Jan-09    Feb-09    Mar-09    Apr-09       May-09        Jun-09   Jul-09        Aug-09      Sept-09        Oct-09      Nov-09   Dec-09
                                                                                                                                                                                                                                                                                              Richmond City Council
                                                                                                                         Month-Year
                                                                                                                                                                                                                                                                                      Office of the Assessor of Real Estate
                               The graph above shows the amount and distribution of 2009 Richmond real estate sales that were bought                                                                                                                                                  Richmond City Hall - 900 East Broad Street, Suite 802
                               and sold at fair market value per month. The graph demonstrates that the most active group was properties                                                                                                                                                  Richmond, Virginia 23219 - 804.646.5600 (tel)
                               selling for $300,000 or less.                                                                                                                                                                                                                                  www.richmondgov.com (website)


                                                                                                                                                                                                                                                                                     CITIZEN INFORMATION BOOKLET
Our Government, Real Estate and Taxes
                                                            Richmond Annual Real Estate Assessment Process
 As Richmond citizens, we pool our resources to own         Richmond Real Estate Assessments are annual estimates done each year to establish fair and equitable
 and operate our government and decide what pub-            values for each real estate parcel in the city. Values are assessed (reassessed) annually in order to estab-
 lic services we want and how to pay for them.              lish updated fair market values due to changes in real estate value, which include:
   Examples of our services include the manage-
 ment, oversight and delivery of such things as clean/
                                                             1 Market changes 2 Improvements 3 New construction 4 Corrected errors 5 Demolitions
 safe water; streets/parks; firefighting/rescue; trash/
 sewage removal; laws, police/courts; and, our chil-
 dren’s education. Together, we own, operate, use
                                                            Real Estate Assessment Factors
 and benefit from these services every day.                 The following assessment factors are used to help ensure that assessments are fair and equitable.
    We as citizens have determined that a fair way to        1     Comparing property values to others in the area that have sold recently;
 help pay for these services is for real estate owners to
 annually contribute funds, based on a percentage                  Determining how much it would cost, for current material and labor, to replace a property
                                                             2     and, if a property is not new, how much it has deteriorated; and,
 of the value of the real estate they own in the city.
 To help ensure fairness, this process includes:                   If a property is rented, how much income would it produce and how much operating
                                                             3     expenses, taxes, insurance, maintenance costs and return on the investment should be.
 1. Each year, the fair market value of real estate in
    the city is assessed and the value is set Jan. 1.
    Values are based on the previous year.
                                                            Richmond Real Estate Assessment, Setting of Tax Rate and Tax Payments
 2. An annual Richmond Real Estate Tax Rate is set          The following calendar includes a summary of annual dates and information regarding real estate
    by Richmond City Council by April 15. This rate is      assessments, appeals, setting of tax rate and tax payments.
    the percentage, based on $100 of value, that a
    real estate owner will contribute.                        Autumn             Richmond Office of the Assessor of Real Estate scrutinizes preliminary real estate assess-
                                                             (Oct./Nov./Dec.)    ments and puts them through a series of quality control measures to help ensure accuracy.
 3. Real estate owners pay their share annually,
    based on the value of their real estate and the           Winter             Richmond Office of the Assessor of Real Estate performs final quality control measures and
    tax rate by June 15. For example, if a person who        (Jan./Feb/March)    new real estate assessments are prepared. Some important dates during this time include:
    owns $100,000 in real estate and the tax rate is                             Jan. 1 Real estates values are established and recorded in the Richmond Land Book
    $1.20 per $100, their share is $1,200.                                       Jan. 25 Owners are mailed new real estate assessments (includes previous year value)
                                                                                 March 1 Deadline to file formal appeal of new real estate assessment, using an
    Our real estate tax is the largest single funding                                     Application of Review of Assessment form
 source we use to pay for our public services and is
 used statewide to pay for local services. There are          Spring             Richmond Office of the Assessor of Real Estate, inspects and evaluates properties, which
 approximately 73,000 real estate properties in Rich-        (Apr./May/June)     includes creating and updating descriptions, photographs and sketches. Some important
 mond and to help ensure fairness, Virginia State Law                            dates during this time include:
 requires that Richmond perform annual real estate                               April 15 Annual Richmond Real Estate Tax Rate set by Richmond City Council
 assessments to determine fair market value.                                     June 30 Deadline to file formal appeal with Richmond Circuit Court Board of Review
            Richmond City Council                             Summer             Richmond Office of the Assessor of Real Estate, inspects and evaluates properties, which
   Office of the Assessor of Real Estate                     (July/Aug./Sept.)   includes creating and updating descriptions, photographs and sketches.

 To help ensure consistency and fairness in establish-      Appealing an Annual Richmond Real Estate Assessment                                    Note: Richmond Real Estate Taxes
 ing the value of real estate, one of the duties of the     If a citizen does not agree with the assessed value of their real estate they may:
 Richmond City Council Office of the Assessor of Real                                                                                               1 The Richmond Office of the Assessor of
                                                             1    Contact the Richmond Office of the Assessor of Real Estate to discuss                Real Estate does not set real estate tax
 Estate is to perform annual real estate value assess-
                                                                                                                                                       rates or send tax bills.
 ments of properties located in the city, as required
                                                                  If concern is not resolved, file a formal appeal using an Application of
 and prescribed by Virginia State Law and national
                                                             2 Review of Assessment form, available from city libraries, office and                 2 Richmond Real Estate Tax Rates are
 real estate assessment standards. These assessments                                                                                                   set by Richmond City Council.
                                                                  Website. Application must be filed by March 1 for that year’s assessment.
 are published in a Richmond Annual Land Book.
                                                                  If still not resolved, file a formal appeal to the Richmond Circuit Court         3 Richmond Real Estate Tax bills are
     This office is not involved with setting our real                                                                                                 Prepared and sent by the Richmond
 estate tax rate or the paying of taxes. The process         3    Board of Review, using the form and information available from the city              Department of Finance. For tax bill
 followed by this office is illustrated to the right.             website. Appeal must be filed by June 30 for that year’s assessment.                 questions, please call 804.646.5700,
                                                                                                                                                       or email finance@richmondgov.com.

								
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