As we learned from a recent public debate (which focused on a portion of the city of Champaign), there is only a weak correlation between assessed value and market value. Assessments are updated by statistical methods, not by an inspection of properties. The only way to improve the correlation is to have all properties appraised (which means someone licensed to determine market values of houses inspects the property). But this would cost $300 to $500 per house. Individuals owning properties assessed for less than market value, and thus having a low tax bill, obviously never complain. Those whose properties are over assessed complain. One can go to this web site http://www.realtor.com/FindHome/default.asp?mode=City&st=il&poe=realtor
and see the asking prices of homes listed for sale. Then one can go to the local county web site
http://www.co.champaign.il.us/ccao/assessor.htm
and check the assessment of a property for sale. If the assessment is "correct" then multiplying the assessment by 3 should approximate the property's market value. (Of course asking price might be 3-5% higher than ultimate sale price.)
I am not sure about this but if you went to the assessor's office, you might be able to review the assessments of recently sold homes.
I would speculate that on average, either of these approaches will result in finding that assessments are on average 20-25% less than market values. Of course market value is a bit elusive because sometimes someone pays too much, and sometimes someone gets a good deal on an underpriced property or from an anxious seller.
Michael Fuerst
