Real Estate Word of the Day: Assessed Value

First Time Homebuyer Real Estate Word is Assessed Value

So many real estate terms can be confusing to home buyers and sellers alike whether it is an acronym like FSBO or an often used word like equity or foreclosure. As a REALTOR® I am not surprised when that look of confusion comes over a buyer’s eyes when I mentioned escrow or earnest money. These terms sound so much alike when being bombarded with new terminology like, mortgage, deed, easement, appraisal, and association dues, etc. It is understandable that homebuyers that are more interested in room sizes and kitchen counters to be confused with the everyday real estate jargon like down payment or cash to close. This confusion is very understandable because for most people, buying a home is a once in a lifetime experience.

This REALTOR® jargon is so prevalent, I thought a First Time Homebuyer glossary of real estate terms might be helpful. From time to time I have been adding to this list of terms used often by REALTORS® in a series of posts. This way you can skip buying that big “how to buy a house” book or attending that First Time Homebuyer Class and have a quick resource at your fingertips. I am continuing the series with Today’s Real Estate Term:

Assessed Value (or Tax Value) Every home has a value assigned to it by the county assessor which is the assessed value. This value is updated on regular basis (usually once a year) and it is used for determining your property tax. This value should not be confused with an appraised value (value determined by an appraiser) or market value (value determined when listed on the market), since it is often a year or two out of date. Usually the assessor will determine a separate value for the land and the structures. This value does not add for landscaping which would be included in a values determined by appraisers and homebuyers.

 
Copyright 2013 www.terieckholm.com

Tough Pill to Swallow--Tax Valuations Arrive in Anoka County

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It’s that time again…Your 2010 Notice of Valuation for property in Anoka County should be arriving in your mailbox any day now!

Ours arrived just last week and the numbers, surprisingly, did reflect the recent real estate market! I had mixed feelings about the drop in value, happy I didn’t have to argue with the assessor that our home was being overvalued but disappointed in the reality of how foreclosures have affected of all Anoka County homes. As a real estate agent, I know that the sales price of homes has decreased significantly in some areas of Anoka County during the past few years. The decrease in value has been so noticeable that when I received my 2009 Notice of Valuation, I doubted I could sell our home for the value set by the county.

I have spoken with the Anoka County assessor’s office on a few occasions. They are very nice and explained that they previous year's data and setting the value for the next year. So this 2010 statement contains a valuation based on 2009 values which will be used to assess taxes in 2011. The assessor’s office attempts to stay on top of the real estate market and goes out to review area properties on a regular basis. This process goes year round but starts in the spring and summer. The office diligently watches the property sales amounts with a goal to be within a few percent of the actual market value at that specific period of time. But remember, by the time everything is processed and mailed to tax payers, the information for 2011, which we receive in the spring of 2010, is now 6 months old. I can only imagine that with this fluctuating and changed market, how difficult assessing property values can be.

It can be a challenge to explain the difference between the county’s property valuation and what I determine to be the optimal list price to the average home owner request a comparative market analysis (CMA). Of the most recent CMA’s I have completed, home owners still have a bit of a reality check. Today a homeowner considering a traditional sale (not a lender mediated short sale) has to spend money to put their home in exceptional condition and then price the home competitively. That is, price the home to compete with the prices of bank-owned and short sale homes. With decreasing property values this can be a tough pill to swallow for many sellers.

As an Anoka County home owner, I am not concerned by the 10+% reduction in value of my home by Anoka County. Since my valuation directly affects what my property taxes will be, a lower value should equate to somewhat lower taxes. As a REALTOR® I know sellers see things a bit differently. They want to look at the maximum value or an old appraisal for the worth of their home: their asset: their investment. Unfortunately, buyers and appraisers look at the current value in the market today. And though the numbers of homes sold has picked up a bit in the early part of 2010, current SOLD prices sold are still down 15-30% from the values of a few years ago. Homeowners wanting to sell their home this year must list at a price more in line with the tax valuation just received than with what it appraised for or was valued at years ago.

Copyright 2010 Teri Eckholm 

Ham Lake is Growing—In Size not Property Value

The Ham Lake city council hosted a Board of Appeals and Equalization meeting in April. According to the Ham Laker, the Anoka County Appraiser, Peggy Nordrum reported on real estate activity for the City of Ham Lake. Her findings echo what I first noted when I received my tax statement earlier this year, where I saw a 2.6% decrease in assessed value on my own Ham Lake property. Ms. Nordrum reported a 3.3% citywide decrease in the average median sale price of a residential home. Take a look at the numbers:

As a Realtor working who lives and sells homes in Anoka County and the north and east Twin Cities suburbs, what I find most interesting is that while these figures are down slightly, Ham Lake property values have risen 62.3% since 2000. Overall this is a pretty health increase in property values for the average homeowner in the city.

Nordrum also reported that the Ham Lake taxable property base is growing. As of January 2, 2007, there were 6,603 parcels in the City of Ham Lake. This is an increase of 120 parcels or 2.6% over the count in 2006. This statistic is not surprising to many Ham Lake residents as there are several new development signs and acreage that has been split into smaller lots throughout the city.

If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage properties! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2007 terieckholm.com