Residential Assessments
It may be hard to believe, but over the past four years the average residential home value has been creeping up ever so slowly. (The Dubuque Telegraph Herald also had an article about this on March 1, 2011.) Our information indicates that residential market values have increased an average of 3% since 2007. We know, it sounds like another government story to raise value and taxes during tough economic times. No one doubts that the economy is weak, and on a national level real estate prices have fallen, but here in Dubuque County the residential market continues to plod along at a slow even pace. These measurements of the residential market were calculated from actual arms-length* sales in comparison to a relatively stable assessed value.
Back in 2007 we set the median residential sale to be assessed at 97% of what it sold for. Said another way, the average residential parcel at that time sold for 3% more than it’s assessed value. Since that time, we have made some small parcel by parcel changes but the vast majority of the residential parcels continue to retain the value set on 1/1/2007. During 4 years since then, we have monitored the sale prices of “arms-length” sales and compared them to the assessed value. The sale ratio now shows that assessed values are now 6% less than the median selling price. Our internal sales ratio studies are also reviewed and checked by the Iowa Department of Revenue and they report the same conclusions. Click here to see a state map showing median ratios. Click here to see county by county information on median ratios.
While this is good news as far as retaining equity value in your home, it also means that we are now outside of the 5% tolerance that is mandated by state law. The Code of Iowa requires each assessor to assess property within 5% of the median sales ratio. There is no doubt that a revaluation of residential property for 2011 is needed and required. That can happen in one of two ways. If we do nothing and make no changes to the assessed value, the Iowa Department of Revenue will issue an across the board equalization order this fall and mandate that all residential properties be increased by 6%, thereby setting the median sales ratio at 100%. The second option, and the one we have chosen to pursue, is to revalue property this spring. By revaluing this spring and sending individual notices to taxpayers by April 15th, we can make individual changes to each city and township, and we can also minimize the impact of an increase by moving the median sales ratio to 97% instead of to 100% as the other method would do.
All of the residential property information is loaded into a computer assisted mass appraisal (CAMA) software which allows us to analyze sales and assessments on a city by city and township by township basis and to make adjustments based upon the sale prices in that area. The CAMA system allows us to more accurately reflect individual market area selling prices. In addition to using the CAMA system to set assessed values, we will also be changing cost manuals used to estimate values. In 2007 we used the 1998 Iowa Real Property Appraisal Manual and for the 2011 assessments we will be using the 2008 Iowa Real Property Appraisal Manual. The Iowa Department of Revenue has required all assessors to convert to the new manual by no later than 2013. By requiring all assessors to use the same cost manual, greater uniformity in assessed value across the state will be achieved.
Before April 15th, we will be mailing an assessment roll to each residential property owner. We ask that you review the value stated on the notice and ask yourself if that is a reasonable estimate of the market value of the property. Not everyone is a realtor, or knows a realtor to seek advice on this question, therefore we have provided sale information and search tools on our web site: www.DubuqueAssessor.org. Click here to visit www.DubuqueAssessor.org. We invite you to visit our web site if you feel the assessed value may not reflect market value. If you have questions on how to utilize the site, please call our office and we will be glad to assist you.
If after examining the sold property information on the web site, you feel the new assessed value does not reflect market value, you may appeal to the Dubuque County Board of Review between April 16th and May 5th. The Board or Review is an independent 3 member citizen panel which hears protest of assessed value. They meet each year during the month of May. Protest forms are available at the Dubuque County Assessor’s office, and should be filed with the assessor’s office after they are completed. Appeals should contain specific information or evidence supporting a claim of over-assessment.
(*Only arms-length sales are used in the sales ratio studies. “Arms-length” is defined as willing seller and willing buyer, each under no compulsion to buy or sell. Sales to relatives, sales by banks which acquired the property via foreclosure, and estate sales are all examples of sales which are not arms-length.)