City Of Eden Prairie: Eden Prairie Home Values Increase By Historic Levels

Press release from the City of Eden Prairie:

03/04/2022

The value of single-family homes in Eden Prairie increased by almost 20% in 2021, reaching nearly 10 years of typical valuation growth in just 12 months.

This historic growth in value took place in most communities across the metro.

Homeowners will notice the increase reflected in their 2022 Valuation Notices, which are expected to begin arriving in mailboxes the week of March 7.

Property Assessment Frequently Asked Questions

What caused the historic increase in value?

• Many factors contributed to the dramatic increase in value, most notably a shortage of homes for sale.

How does the City Assessor determine the market value of my home?

• The annual assessment process analyzes what a property would sell for in an open market transaction. The assessor estimates values based on actual sales of comparable properties.

What factors determine a property’s value?

• A property’s market value can be affected by multiple factors such as size, age, condition, quality of construction and other features such as fireplaces, decks, porches, etc. As a result, two neighboring homes, while looking similar from the exterior, can have varying market values.

If my home value went up 20%, will my taxes go up 20% too?

• Not necessarily. While we do expect a shift in tax burden from commercial to residential properties for taxes payable in 2023, many factors will determine the amount each taxpayer owes, including property classification, individual value change and homestead market value exclusions.

What is the difference between “Taxable Market Value” and “Estimated Market Value”?

• Taxable Market Value is your Estimated Market Value minus any deductions attributable to special programs, such as the Homestead Market Value Exclusion.

Who is eligible to receive the Homestead Market Value Exclusion?

• Homes valued at $413,700 or less are eligible for a Homestead Market Value Exclusion (HMVE). Given the historic increases in values, it is estimated that one in five residential properties in Eden Prairie will no longer be eligible to receive the HMVE, and most properties that remain eligible will see a reduction in the exclusion amount.

What happens if the sales prices go back down this year?

• If future sales indicate market values have dropped, assessors will follow the trend down, as the estimated market value of each home is based on actual sale prices of comparable properties.

What do I do if I think my home valuation is incorrect?

• Detailed appeal options can be found on the Valuation Notice mailed to property owners the week of March 7.

Visit the Assessing FAQs page for additional information regarding assessments, property taxes and more.

This press release was produced by the City of Eden Prairie. The views expressed here are the author’s own.