Real Estate

Our primary focus in the Real Estate Department is to determine the fair market value of your property so that you only pay your fair and equitable share of property taxes. The assessed property values we determine are then used by the Treasurer, in conjunction with the tax rate determined by the City Council, to allocate a portion of the total property taxes the City of Salem requires to fund core services.

In the process of determining property values, we also:

Research and manage property ownership and addresses;
Analyze trends in sales prices and construction costs;
Analyze trends in market rents and expenses by property class; and
Maintain property record cards and note key building and property characteristics.

How Do We Arrive At The Assessed Value?

Property values can fluctuate from year to year depending on alterations made to your property and changes in market conditions. In the Real Estate Department, we analyze the sales, income and expenses, property characteristics, and construction costs to understand how the market impacts property values. Once we understand the market, we update assessments accordingly with our annual reassessment. We use two different approaches to value based on property type - residential and commercial.

Assessment Overview

Data Collection: During data collection we collect and verify property record information, construction costs, and other data to assist with analysis and valuation.
Data Analysis: We analyze sales and the data collected thoroughly to determine the fair market value of all properties in Salem.
Property Valuation: After analysis, the assessor determines the appropriate fair market value of all properties while ensuring fairness and equality.

The Assessment Process

Valuing property accurately so that assessments are fair and equitable is the assessor’s primary focus. The process of determining the tax assessed value for each property goes through three main stages:
Data Collection - Throughout the year, the Real Estate appraisers gather sales information, construction cost information, and verify property information through property inspections and interviews with property owners, as well as the use of third-party sources.
Data Analysis - Using the verified information, we update the property records, categorize properties based on class, and determine the best valuation methodologies for each class of property.
Property Valuation - In this step, we determine the fair market value of each property based on the information collected and the results of our analysis. Assessments are finalized when they are determined to be equalized and in line with fair market value.