Same in Canada.. always seemed fair enough to me and I assumed it was standard but now I'm curious how many other ways they are and how they shake out.
There is little thought given to how much the individual house is worth, rather it relies on comp sales in the area. For example, a fully renovated house might go for $500k, but another in the neighborhood with the same number of bedrooms and bathrooms in a less desirable location (say the entrance to the neighborhood) might only be able to sell for $400k.
It is also very common for the adjustments upward to be far quicker than adjustments downward.
Then there are definitely examples out there of the city appraised value being driven by desired tax revenue and becoming detached from the reality of sale prices.
