|
The following are questions all property owners should ask
themselves with regard to the pending reassessment that
was effective as of March 1, 2006:
1) Have you reviewed the two components of your
assessment: land and improvement?
2) Are the features of your property accurately
documented?
3) How do your current assessments compare to your prior
assessment?
4) Are there noticeable increases, decreases or little
change when comparing the two assessments?
One of the first steps in the assessment process is
created from an estimated cost to build the improvement.
Quality features for any home will influence the cost and
may vary greatly within the same neighborhood. The number
of bathrooms and their detail, kitchen design, fireplaces,
exterior siding, interior finish influences the quality of
a home. Depending on your neighborhood, the percentage of
variance in cost per square foot can vary by more than
50%.
The accuracy for the calculation of the finished living
area above the basement may also be miscalculated.
Multilevel homes have finished living area that may vary
by more than 10% depending on the architectural design of
the home.
Depreciation or the age of the home is also factored into
the equation. In some cases, the lack of maintenance for a
property may greatly influence the depreciation factor.
The interior depreciation of a home may not have been
determined by an assessor, as they are sometimes limited
to an exterior view of a property.
The land value is a separate but important component of
the value assessment. Within a subdivision, the following
factors that influence value can vary greatly: size,
topography, landscaping, drainage, and site utility. An
assessor here again has limitations as to what they can
view from the typical drive-by viewing. A property that is
situated in a wooded area has significant limitations for
identifying positive or negative value features of the
site.
It is important for any assessment calculation to properly
identify the value trends that exist within the
neighborhood/area that a property resides. A school
district can influence a property assessment. The location
of a nearby landfill can influence a property value.
Within the two components of value, improvements/land, one
may be accurate while the other may be in error. Both may
be in error. Both may be correct.
Everyone has an option to question the accuracy of his or
her assessment. There is a deadline for the appeal of an
assessment. The effective date of the most recent
assessment is March 1, 2006. It is important for anyone
who researches his or her property value to use the March
1, 2006 date as the benchmark. Any subsequent sales
transaction or factor of value that occurs after that date
is not required for consideration in the calculation of
the assessment.
Do you have the ability to adequately review the value of
your property? There are professional providers, such as:
real estate appraisers and real estate brokers with an
adequate basis for determining the assessed value. It is
my opinion that a certified residential appraiser is
possibly the best service provider to assist the
homeowner. The appraisal can then be used for the appeal
of the property tax assessment if needed.
Thank you for your inquiries on my last article. If you
have any questions or comments on this article or if you
have a topic relating to residential issues please let me
know at: 812-372-8478 ext. 17 or tscheidt@donrscheidt.com.
Thank you for this opportunity.
Tim Scheidt, SRA
Certified Residential Appraiser
Columbus Manager, Don R. Scheidt & Co. Inc. |
