BY BECCA JONES
Realtor, Associate Broker
EXIT Realty Advantage NM

I want to take a moment to discuss the recent Los Alamos County Assessor property valuation notices (NOV) that include a new line item labeled “Fair Market Value.” In previous years, these notices typically displayed the prior year’s taxable value, the current year’s assessed value, and estimated property taxes. The addition of “Fair Market Value” can understandably raise questions about what this number actually represents.

As a licensed realtor, I believe it’s helpful to understand how this figure is determined per the county assessor’s office. The “Fair Market Value” shown on these notices is derived from a process called a ‘sales ratio study’. This study averages the price per square foot of homes sold in our area, in recent years, adjusting for the number of bedrooms and bathrooms. While price per square foot is a useful data point, it is only one piece of a comprehensive market analysis.

It’s important to recognize that this estimate is based on data from the past—specifically from sales in 2023 and 2024. The real estate market can change rapidly, so data that is even a year or two old may not accurately reflect current conditions. Additionally, this method does not account for specific property details such as condition, upgrades, views, lot size, layout, or current market trends, all of which can significantly influence a home’s value.

In reviewing more than a dozen of these NOVs, across different types of homes—single-family, condos, and multi-family—I observed that the “Fair Market Values” listed often appears inflated or deflated and may not represent what a home could realistically sell for today. While the term “Fair Market Value” suggests a reliable, current market price, it’s more akin to a broad estimate based on outdated data.

For those seeking a precise understanding of their property’s worth, I recommend consulting with a licensed real estate agent or certified appraiser. As professionals, we conduct thorough evaluations, including on-site assessments and analysis of current market conditions, to provide a more accurate and personalized estimate.

While the intention behind including this “Fair Market Value” may be to provide helpful information, it’s important for residents to understand that this figure is a generalized estimate based on historical data and should not be solely relied upon for decisions like selling, refinancing, or planning major improvements.

I encourage everyone to consider professional advice for a detailed and current valuation of your home. Understanding the origins and limitations of this estimate can help you make better-informed decisions about your property.