Property tax assessments (Notice of Valuations – NOV) have hit everyone’s mailboxes in the past week and I have talked to several people about the process and how to appeal. Here is a brief summary.
How are properties valued?
State statute requires that each property in the county be re-valued by the County Assessor in odd numbered years (as in this year 2015). The value is based on real estate market activity during the 18 month data collection period that runs from January 1 of the previous odd numbered year (January 2013) to June 30 of the most recent even numbered year (2014). If there is not enough real estate market data collected during the 18 month, odd-numbered year period, the Assessor can use data collected back five years from June 30 of the most recent even-numbered year.
It is important to note that this trailing data from up to two years ago. As our market has improved in the past 12-18 months this most recent valuation may seem low relative to what you believe your house is worth and this is due to the fact the data is representative of past market conditions, not present.
The opposite was true in 2009 when the real estate market experienced a downturn and the assessed the values were higher than what home owners were witnessing in the market place as the data from 2007 and first part of 2008 was much higher.
Determining Property Value
The Assessor’s Office uses the following methods to determine property value:
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Evaluation of real market data that reflect actual sales in the marketplace
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Comparison of properties of "like" characteristics and location using state-of-the-art modeling software and advanced mass property appraisal tools
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Incorporation of information derived from property appeals
Factors in Comparing Like Properties
The most central factors that evaluators use for property valuation are:
Considerations / Key Takeaways on Notice of Property Valuation
The Notice of Valuation (NOV) is not what your house is “really” worth in the actual market. This is an assessment based on older data for the purpose of levying county property taxes. Don’t despair if this valuation is lower than you believe the property is worth! In fact, you should cheer if the value is lesser than you expect as this results in a smaller tax bill.
If the Notice of Valuation (NOV) seems higher than expected which will result in higher taxes there is an appeals process which requires you to send market data to the assessor supporting your claim for lower valuation. I have personally appealed a few of my assessments over the years and was able to get some relief in a reduced valuation in several instances. If you feel you have been incorrectly valued call me and I am happy to assist and research your appeal. For Boulder County the link to appeals process is https://www.bouldercounty.org/dept/assessor/pages/appealsprocess.aspx. Don’t send a check to the county if your mortgage company escrows and pays property taxes your behalf.
If you want to get an accurate and updated opinion of your property current value in the market, let me know and I am happy to crunch some numbers for you.