The start of the new year marked the start of Orange County’s property revaluation process, with the county assessing the values of all residential and commercial land. And with its in-demand property market, the county is likely to see a jump of more than 50% in total value this four-year cycle.
The Orange County Tax Administration, which conducts the local revaluation, shared a presentation with the Board of County Commissioners on Tuesday detailing some of the trends seen as the 2025 review is being finalized. That includes the significant increase in value since the last valuation in 2021, which corresponds with the increased housing prices aided by a hot market and rising construction costs.
The revaluation numbers come from a combination of the property type, neighborhood, age, condition and size of a home or business. The process not only helps update the value based on market rates but allows the county a chance at equalization – which aims to balance the tax burden between property owners to meet that market rate.
Orange County Tax Administrator Nancy Freeman said the county is not alone in seeing noticeable increases in property values this cycle. She said after surveying other counties doing revaluations this year – either within their regular cycle or as required by North Carolina based on their sales ratio – Orange County actually falls below both the average (61%) and median (55%) county-wide growth reported in the state.
“What we did look at is the counties that did a four-year revaluation like we do, whose last valuation was in 2021,” Freeman added. “Of those, the average is a 51% increase – so, we’re very close to that amount – and a median of 54%, [with increases ranging from] 25% to 67%. So, although it seems like a large increase, we’re seeing that throughout the entire state.”
The extremely competitive and rising housing prices in Chapel Hill have borne out so far in the 2025 data, according to Freeman. After the median sales price for a single-family house in Chapel Hill was marked at $474,000 in January 2021, the median price this January was up to $695,000 according to data from the Orange Chatham Association of Realtors. Numbers like that contribute to a big jump for residents’ value, especially with the county’s other towns and communities also seeing an increase in median sales prices – albeit not as drastic.
To complete the new valuations, the county office uses a mass appraisal system that pulls from permits and other local government documents in addition to doing thousands of field reviews. Freeman said the division targeted areas that saw a large number of appeals in the 2021 cycle and commercial properties for the in-person visits, and it could make a big difference in more accurate assessments this time.
“We could not do as many in 2021 because of the COVID restrictions,” said the tax administrator. “So, we were very happy to do more and have more boots on the ground to do this.”
Freeman added, though, that the pandemic likely led to fewer residents being aware of the revaluation and fewer opportunities to share how to appeal the initial appraisals that were distributed four years ago. Compared to a combined informal and formal appeal total around 2,000 in 2021, the county is expecting roughly 2,500 informal appeals and 750 formal appeals this spring and summer.
Chair of the Orange County Commissioners Jamezetta Bedford told 97.9 The Hill when the property value letters are sent out in the next couple of weeks, it will be important for people to carefully read the alert instead of skimming it – or putting it off.
“The clock starts running from when they [send it out] through April 30,” she said of the informal appeal process. “You need to look at it and say, ‘Wait a minute, I don’t have a finished basement’ or, ‘That’s not the size of my house.’ Just look for any errors in the description of your house.
“If there are any errors,” she continued, “then the informal appraisal – where you call them up or go online to the county website – you don’t have to hire a lawyer [and] it’s really the best way to go.”
Bedford added that while the local government taxes will be based on their budget priorities and will factor in the property revaluations, residents should set their expectations for having to pay more in taxes these next four years as a result.
“When you get your [property value] notice in mid-March, you’re going to go ‘Oh my gosh,’ [from the increase],” the board chair said. “But remember that we then will lower the actual tax rate to be revenue neutral to start with. I very much doubt that it will stay there, but it will [be lowered] to start with – and then you’ll be an individual winner or loser.”
The formal appeal process will begin in May 1, and will involve property owners pleading their cases to the Orange County Board of Equalization and Review some time before July 31 when the board adjourns.
Property owners can search their property for an initial appraisal and value here, while the online appeal form can be found here. More frequently asked questions about revaluation in Orange County can be found on the county’s webpage about the process.
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