Your Assessment. Be part of the discussion of what is fair and equitable

Cross Plains Town Hall was a busy place last week when they held Open Book following their recent property value reassessment. The question on everyone's mind for the hired assessor was, "How do you increase my assessment when the real estate prices are going down?" I heard pieces of the answer. It was delivered with the confidence of a person who has evidence on his side. What made me chuckle was his evidence was actually a lack of evidence. One home owner said, "There are no homes near mine that have sold." The assessor responded that he has comparable sales in the township from 2006. "That was the height of the market", the home owner countered. Disregarding the fact that the sale was 5 years old, the assessor said  the top of the market was 2008, and he agreed the recent sales pool is shallow. I wouldn't want his job.

Certainly assessors, appraisers, and realtors use relevant, but not necessarily comparable, properties to determine a reasonable market value. Appraiser's hands are tied by the lack of recent sales because of underwriting rules which demand new sales in the appraiser's calculations. An assessor, however, may be free to use various data to calculate square foot costs, give land a value by the foot, and when finished, his figure is your assessment number...Provided the method was fair and equitable.

A host of factors trigger new assessments. In Madison, when values were going up, a sale caused the property to get a new assessment... at the new sales price. That's not the same in smaller communities. Townships and Villages for example, go for years without changing assessments. A home with an assessment of $225,000,  could sell for $275,000 and two years later, sell again at $290,000, and still be assessed at $225,000.  I may not be able to convince you, but assessments are not a reliable representation of value for determining a real estate sales value. Of course it's possible to show average sale prices to assessments, but averages mean nothing when we look at one property at a time.

When it comes to real estate sales, assessments are no more than a convenient tool for a buyer or owner to argue their position on their price/value opinion. I noticed this spring that buyers were coming into open houses armed with data showing the sales prices compared to assessments for homes. Even though 20% of the homes in their data were distressed sale properties, the number no the facts carried the most weight for those folks.


Here are a few other observations about assessments:

• People who question their assessment have a reasonable chance of having an assessment lowered
• Sales prices are the best indicator of value
• Homes owned by the same person for decades seem to have higher assessed values than neighboring properties
• In modest priced neighborhoods, the atypical, high value homes are sometimes assessed at a lower percentage of their sales market value than the typical property for the neighborhood
• Elderly home owners could benefit from a family member or friend assisting them with reviewing their assessment

We are in different economic times. If you are interested in being part of the discussion regarding your assessment, take a close look at a guide prepared by the Wisconsin Department of Revenue: Property Assessment Appeal Guide For Wisconsin Real Property Owners   
November through January  is a good time to get ready for next year's assessment. Or, if you were recently reassessed, get in touch with your local assessor.  If the link above doesn't work, copy and paste this: http://www.revenue.wi.gov/pubs/slf/pb055.pdf

If you are interested in comparable sales in your neighborhood to get a handle on your property value, you can select: SEARCH SOLD LISTINGS on  my web site: www.TomMeyer.com, or just send an email to me and I'll do the search for you.

Wishing you well,