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This Little Piggy Went to Market. But . .

what’s “Market”? That’s what every ARB panel asks and the answer is subjective.  So your value is also.

The classic definition, paraphrased, is that market is the price at which a willing buyer not under pressure to sell and a willing buyer not under pressure to buy will agree to receive and pay.

For a property which sold within 18 months prior to the January 1 appraisal date, the answer is easy:  the purchase price defines market.  But what if the price included furniture, fixtures, inventory, good will and other intangibles.  If they are itemized on the Settlement Statement or in a separate agreement then there’s a good chance “market” will be adjusted downward.  But if not, don’t even try to argue it unless there’s some other evidence.

What if the buyer paid more than market due to extenuating circumstances such as the school year was beginning soon?  We’ve tried it; it won’t work at the ARB.

What if you later learned the property was not as advertised; it had structural defects or termites or other problems.  We’ll need third party evidence such as correction or repair estimates to represent you properly.

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