How exactly does the Assessor value Residential Property?
June 2nd, 2008 by Mark FlandersFirst allow me a personal comment. I came into this job ten years ago following eight years in the real estate business as both a sales associate and managing broker. I knew how to do a CMA for prospective sellers (and buyers) and I had a fairly good idea how the fee appraisers did their job. I knew nothing about mass appraisal as done in the assessor’s office. I was immediately impressed by the sophistication of mass appraisal and the standards established by the International Association of Assessing Officers (IAAO).
Mass appraisal can be a complex process but let me try to simplify it for the purpose of universal understanding. I’d first like to make a comparison to CMA’s and fee appraisals. The CMAs and fee appraisals select sales of properties (usually three) similar to a property being evaluated and then make necessary adjustments to the sale prices in order to match the subject. In mass appraisal all valid sales within a neighborhood or other grouping of properties are used. I will try to explain in a simple way how this is done. There are two key ingredients mass appraisal:
- A database is built containing information (characteristics) important to value on each of 112,000+ properties in the county. We call the characteristics variables and work hard to ensure the accuracy of the data. Although we use others, those variables most important to value are lot size, and view quality, plus dwelling size, quality, style, condition and age. With the land and view classifications we use actual sales of vacant and improved parcels to develop base land rates and view quality adjustment factors. With the dwelling and other site improvements we use national cost and depreciation rates. These rates allow us to account for the relative differences of all properties in their individual characteristics.
- Step two is to annually adjust the result derived from step one to the actual market in Kitsap County. We do this by dividing the county into about eighty market neighborhoods, measuring the previous year’s sales against our current assessed value, and then make global adjustments (up or down) to all properties within each neighborhood. In this process the important variables mentioned in step one are also tested using the same measuring of sales to assessed value to make sure that the rates are working appropriately. It is important to understand the timing of our value determinations. The value for which this year’s taxes are based is our conclusion of value on January 1st last year. This means that the value used for taxes due on April 30th is actually a value from 16 months ago.
In the interest of brevity I have not discussed the way in which we adjust unique properties using land influence factors and dwelling relative desirability factors. I have also not discussed the appeal process, where we actually do a mini fee appraisal to verify that our rates and adjustments are producing a reasonable result. And I have not discussed the mass appraisal of commercial properties, where we rely most on an income approach. I welcome further discussion on this from any and all readers.
Share on Facebook
No related posts.
Tags: jim avery, kitsap county assessor, kitsap county property taxes
![A classic Port Gamble "painted lady"](http://soundbiteblog.com/wp-content/gallery/port-gamble/port-gamble-013.jpg "A classic Port Gamble "painted lady"")
Hi There, this is a very interesting concept. You may find it beneficial to speak to a company here in Vancouver that has been doing this for quite some time: Landcor. They have had mass appraisals for quite sometime and actually sell their product to end consumers…
Interesting Article. Before I became a Realtor, I took a program in assessment, and it was the best thing I have ever done. It is very helpful in gaining an understanding of the influences on value. Being able to evaluate a sale to assessment ratio is also very helpful when it comes to making adjustments for market conditions, or simply understanding the market behaviour over time, and without taking this program, I would not even know what that meant. I still use statistics software on a regular basis, although getting good assessment data is expensive. Our real estate programs do not allow us to exprot the data.:(
Curtis, iatyq, if in an appeal process the local board of equalization or state board of tax appeals makes a judgment call different than ours with regard to a land influence or dwelling desirability factor we’ll go with that into the future. Base rates will continue to be adjusted in future years.
Vancouver, future articles will depend upon the desires of blogmasters. You are welcome to ask me questions via this blog or my email. javery@co.kitsap.wa.us.
Really interesting info! I am in the real estate business and as you said, I had only slight knowledge of about mass appraisal, however, I think it’s important to know it. But as you said, you have not discussed everything – will you continue with similar articles?
Best wishes!
Jay
Great insight on the county’s view of things. I wonder if a property is not appraised accuratly and someone proves it with stats and figures, is that adjustment and the reason for it forever taken into consideration.
great post
Thanks for sharing.
Aloha,
Keahi