Value Adjustments on Comps

[6246994]

I am trying to analyze a county comp-based appraisal on my house. There are three homes that were used in the assessment, all within my subdivision, similar in size and structure (of course all the houses are in my cookie cutter neighborhood), and all sold in the last 6 months. It gives details of all the specs on the comp homes (e.g. square footage, # bedrooms, finished basement, etc). But value goes directly from Sales price to Adjusted Sales price, with no details on the component calculations. Is there any resource available that might give me the standard adjustments for certain items in my area (Johnson County, Kansas)? For example, an extra bathroom adds $X value? A cul de sac lot adds $Y value? A finished basement adds $Z value – that’s a big one because all three comps have full walkout finished basements and mine doesn’t. The county declined to share any details behind how they got from actual sales price to adjusted sales price, so I’m trying to determine if their figures are reasonable.

 

[Joyce Potts]

There often is a difference between between 'assessments' vs free market 'appraisals'.

That debate is longstanding.

Are you alleging the county overappraised your property? If so, I would suggest you gather the data and appeal your assessment. You can always hire a competent appraiser in your area and use that appraisal to help your decision.

 

[Em Tee]

There isn't any "list" of "standard adjustments". It's an urban legend.

 

[Terrel L. Shields]

For example, an extra bathroom adds $X value? A cul de sac lot adds $Y value? A finished basement adds $Z value –

no 'standard adjustment....BUT obviously a fin vs unfin basement is different. So send them a Freedom of Information request for all supporting data. If they don't support it, then it shouldn't go forward in the Board or whoever does that in Kansas. Kansas is notorious for maximum assessment appraisals from what I hear. They frequently appraise property for well above 'market'. Check with a Realtor and ask them about their impression of the differences. Frankly, a Realtor often holds as much weight as an appraiser because the assessor always attacks the appraisers credibility as a 'hired gun'. And most board of equalization members buy that argument.

 

[Mike Boyd]

Most appraisers will deny using formula adjustments for differences in characteristics and features. Supposedly, each adjustment is "pulled from the market."

However, most appraisers will use formula adjustments but they will vary depending on quality and marketability of the specific item. For example: a swimming pool in one neighborhood may have a value of $25,000 and in another neighborhood it might be considerably less or even zero. It is the same with difference in square footage, number of bathrooms, basement or garage. No one can tell you what the differences might be unless he or she just completed an appraisal of a model match next door.

 

[lizhorvath]

Phew.
Okay, I'm a property appraiser and level one assessor for a municipality here in Michigan. My thoughts upon reading your post go something like this:
I don't know about Kansas, so that's the first thing I'll say. However, in Michigan, there is one week in March for people to appeal their assessments. That is called the March Board of Review. Perhaps Kansas has something similar. Someone could call me right now and all I can tell them is to get an appraisal done and wait til next March.
NOW, Marshall & Swift puts out rates tables that we follow to compensate for differences in features and amenities. That's how many assessments vary. Your lot likely has a Land Value as vacant, and your neighbors do also. I doubt a Cul-De-sac is going to make much difference - maybe to a buyer but not in dollars.
Assessments are based on 24-36 month sales histories.
Basement adjustments are based on the type of finish and the square footage finished. Drywall versus Painted concrete and drop tile ceiling versus drywall ceiling, etc. Different dollar amounts per square foot.
Again, this is Michigan.
You should be able to contact your local assessor's office and ask for this information, for example, a copy of your record card. Often people think the smallest things should make the biggest differences, until they ask and are told the facts. Unbelieveable how many things people were never told by their realtors....
Six month old comps in your same subdivision would be the best comps, it would seem. I certainly would use those before traveling to another neighborhood!

 

[Walter Kirk]

I was an assessor for over five years. Our tax assessments were made using a state approved manual and a computer program, not appraisals. When an appraisal showed a different value we normally adjusted the assessment parameters to reflect the appraised value.

Have an appraisal done on the subject property. If you know know what comparables (if any) were used in the assessment use them along with any more comparable sales that may be avaliable.

 

[Josh Shapiro]

A long time ago while on a ski trip with my father we got real toasted one night. He leaned over to me and handed me a piece of paper. I was so wasted that I could not read the words so I put it away. This was 17 years ago. This past winter going through my ski stuff getting ready for a trip back north you will not believe what I found. Thats right folks. I found THE LIST. If anyone is interested I have made 1000 copies each with a special inprint for certification. I will have them on Ebay 1 by 1 over the next 3 weeks. Starting bids per item will be $350.00. This will pay for itself the first order in the door. As soon as payment is received you will be emailed the list with the instructions on the handshake passcodes. Once you open the list, you will have the knoledge you have always wanted.

 

[Fred]

The chances are close to 100% that the assessment reconciled the sales to a single number based on a mathmatical process called regression. The process generates a single value number for a property, and doesn't really generate adjustments. However, it is possible to take the "coefficients" from the formula and show them as adjustments - as this is a common format for displaying appraisal results.

Generally speaking, regression is the most efficient and accurate way to find "adjustments." The formula extracts the amount the prices vary with each characteristic.

 

[Jo Ann Meyer Stratton]

With assessed values the important question is "how does your assessed value compare to the assessed value of other similar properties"? If you house is value in the same value range as all other similar homes in the same neighborhood it doesn't matter how the assessment personal arrived at the value and what the actual value is. For example all the similar properties are valued at $10,000 and you are at $15,000--then you have a complaint. If you are also valued at $10,000--then you do not have a complaint. So your research should be the assessed values of other similar properties.