By GAR Special Counsel/Partner F. Cindy Baire
Why is it important to check your property inventory data with your local real property assessment office?
Real Property Assessment officials and staff routinely update property inventory records. Typically, assessment officials do not have the ability to check interior information unless invited by the property owner.
Valuations are based on current and recent sales activity comparing similar properties to determine a current assessed value. Accurate property inventory is an important piece of calculation. Residential properties are compared based on size of the home (square foot living area), age, construction grade, location, condition and amenities.
Square foot living area is determined by measuring the exterior dimensions of the home. This is an industry standard. Realtors measure room sizes as part of the listing process to inform potential buyers of room sizes. Square footage measures the length and width of the heated structure from the exterior. If the structure has two stories the measurement from the first floor is doubled to include the second story. Angle of roof lines, bump outs, and finished areas over garages are also determined and included. Basements below grade are not included, however walk-out basements and finished basements do receive an allocation of value, but not necessarily included in the total square foot living area. Three season rooms are also not part of the square foot living area.
Property owners should routinely check the property inventory data of their home with assessment officials. Some jurisdictions provide this information through a website and may in fact allow for the ability to submit changes directly to the assessment office from the website.
If a property owner is experiencing some interior conditions that could affect the overall value of the property, owners should submit photographs and/or contractor estimates to the assessment office or request an interior inspection to have the assessment officials physically conduct an on-site visit to determine the condition of the property. Some conditions could affect the valuation of the property. In some cases, assessors may reduce the assessment temporarily and follow-up with the homeowner routinely to see if the repairs were made.
Assessment offices may send a letter to buyers when the property sells to confirm property inventory information and details of the sale. Assessors also use real estate multiple listing services to review property inventory of listed properties.
For vacant land property owners, it is important to verify the property use descriptions are accurate. For example, sometimes agricultural property may be active and considered field crops and other times the property may be unusable. The condition or the use of the vacant land may change over time. Sometimes a municipality or jurisdiction update zoning codes and parcels may change in zoning which could affect the valuation of the property. Some vacant parcels are land locked, meaning the parcel has no road frontage. Property owners want to make sure this is reflected properly on the assessment records.
Commercial property owners have the same considerations. Assessment offices usually have building permit information, so any major renovations or improvements are made to assessment valuations upon completion of the work. However, older structures may have adverse interior conditions that require updating of the assessment records. Confirming how the property is currently being utilized can also affect the valuation. Make sure your property use codes are accurate. Operating expenses, occupancy and leases are also an important part of the process. Sharing this information with the assessment office is important to proper valuation.
In general, all property owners should routinely check their property information to ensure the most accurate information is on file.
