Getting reduced assessments on purchase during covid

[Bruce Runn]

I bought a duplex about a month ago in Minneapolis and just talked to my assessor.  I'll mention that he knows me as almost all my properties are within a 2 mile radius and he's been in several when I've challenged my assessments.  We have a good relationship and he is very complimentary of my properties as I renovate them to make safe/healthy housing available to people.  I bought the duplex in August and it was on the market for less than a week as it had 8 offers and over 30 showings in the 1st 3 days.  I ended up getting it for almost exactly the list price.  The assessment is $44,000 more than what I paid and the assessor was non commital if I what I paid was market price.  While covid is having an effect, we are not seeing reduced prices because of it and he said my option will be to challenge the assessment via court challenge when that comes up in Spring.  I challenged a purchase I had this year and the panel decided it was mainly due to covid pressure and wouldn't adjust my assessment even though I paid $80,000 less than assessment.  Are other people running into issues with this?

[Daniel Anshus]

I would show them the stats that covid pressure has made real estate more expensive so if my purchase price was $80,000 less than assessed value I would argue that the estimated market value that they determined is faulty at best. Assessors are to determine estimated market value using the comparison sales approach, and if you can  prove that the comparable (and your property) sell for less than their EMV than they by law should reduce the value. Not necessarily to your purchase price, but to a market realized value.

I was an assessor for Coon Rapids for 3 years. I know the dark side well haha