Often in the course of our work we are asked how assessed value - the value on the statement you receive each year from the Ada County Assessor's Office - and market value - what a property is worth if one were to sell it on the market today - correlate.
Many times, particularly in older neighborhoods, assessed value and market value do not correlate. This is true for a few reasons:
The assessor's office conducts "mass appraisals" each year to determine value for properties. According to their website, a mass appraisal is: the process of valuing a universe of properties as of a given date utilizing standard methodology, employing common data, and allowing for statistical testing.
The assessor's office conducts these mass appraisals once a year based on the previous year's sold properties. With our rapidly changing market, this does not necessarily correlate with current market value.
Many times older homes have had remodels and additions over the years that were completed without a permit (yes, it's true!). This means the Assessor's Office doesn't have the latest and greatest data about the property.
If you want to know the value of your property, contact us and we'll do a market analysis so you know the value of your home TODAY.
Below are some myths and facts from the assessor's office about assessments, taxes, etc. I've provided a few clarifying modifications.
Myth: "If I think my taxes are too high, I can just appeal them."
Fact: You may appeal your assessed value if you disagree with it; however, taxes are not subject to appeal as they are set by the taxing districts.
Myth: "If my value decreases, my taxes will decrease."
Fact: Tax levies are based on the assessed value of a property within a district and levied to fund operating budgets. An increase or decrease in value may not mean an increase or decrease in taxes.
Myth: "If I call my appraiser during the appeal season, my value will automatically be lowered."
Fact: Appraisals are based on mass appraisal techniques and generally not on a house-by-house basis. We encourage you to call your appraiser if you have questions regarding the value of your particular property; however, values are not generally lowered because of a phone call.
(If you call one of us at Jill Giese & Associates, we can provide the number of the assessor for your district.)
Myth: "Assessments automatically adjust to a sales price."
Fact: The State of Idaho does not subscribe to this method of valuation. Idaho is a "market-value" state and all assessments are determined as of January 1 of the current year based on the prior year's sold properties, using mass appraisal techniques.
Myth: "Assessments are always lower than the typical market."
Fact: Assessment values are market driven using mass-appraisal techniques, versus fee appraisals (the type you get when you buy or refinance a house), based on selected comparables. Sales occurring in the previous year establish the market value for the January 1 lien date.
If you have questions about any of this information, give us a call and we'll happily walk you through it or refer you to someone at the Ada County Assessor's office to provide more information!