Homeowner's Property Value
- Thread starter cycloner29
- Start date
We are in a world of **** if property values start plummeting 20% in one year. The market in Iowa wasn't terrible compared to places like Detroit and Phoenix during the housing crisis. Be happy that one of your biggest investments isn't losing value like crazy.
As an aside, I did get my valuation on my rental down as
I bought my current home at the bottom, so it's done pretty well. My rental is my former home, and the assessed value went down a couple times, but the rate per increased and I've never had a decrease from 1998 to present.
I bought my current home at the bottom, so it's done pretty well. My rental is my former home, and the assessed value went down a couple times, but the rate per increased and I've never had a decrease from 1998 to present.
Kind of same for me. We paid $180,000 in 2012, assesment now is $237,800. Closing in in a $60,000 appraisal - purchase price difference in 5 years.
I won't dispute your point at all. To be fair, we bought our house in the trough in 2012 and our assessed value is $53,000 more than our purchased price so yeah, we are sitting pretty darn good.
Check the assessor card to see if there are any errors. Our county hired a company in 2015 to redo the assessments and they tried to inspect every house in the county. We didn't let them in and they just made up a "fact" that it had basement finish. Still went up 65% but that was undervalued before. You would have a pretty decent argument with it being that much over what you paid fairly recently unless your NBHD is going crazy.
Well, just remember that value and tax rate are related, but also slightly different. I guess I don't know what your issue is if one property went down. Is this just "Libertarian Default Mode" engaging? If you feel that your property is assessed too high you can protest. That don't cost nuthin. Just find comparable sales that prove your point.
This:
I'm not complaining, I don't see any reason a lower assessed value would hurt me. Maybe it mattered more in the past as far as selling the house, as it doesn't seem to matter much currently? We also have no plans on moving/selling anytime soon.
The state business property tax rollback is factoring in imo. Local municipalities are left trying to make up for the loss in that revenue stream. Luckily the housing market is pretty good around here so it is made up with assessment increase instead of having to raise rates in a depressed market like other areas of the state. http://www.bleedingheartland.com/20...in-impact-of-iowa-business-property-tax-cuts/
Our assessment went up just a little over 7% in Polk county which I am hearing is on the low end of what others are seeing. I can't complain, the new value is about what I think we'd get for it if we put it up for sale in this current market but I am hearing some went up way too much and are now over-valued.
My last home I successfully won a protest of the increase once. Not even a year after I bought it they increased the assessed value by 10.5% and about $8000 over what I had just paid for it. My main gripe was not only the value since there was just a recent sale on the property but compared to similar homes in my neighborhood I was valued way too high. The house right across the street from me was an identical house as mine as it was the same builder and floor plan built in the same year and their assessed value was about $17,000 less than mine. Several homes right on my block all built around the same time and similar size and market value were on average at least $15-$20k less which made no sense even with 2 of them on the same street that sold within the same year I bought mine 1 was valued as much as $28,000 less than what they just paid for it. I chose to do the in person protest option and presented all this info and also pointed out that they had my home listed as a 4 bedroom on the assessors page when it was only a 3 bedroom. One of the guys on the board said "being a 4 or 3 bedroom home isn't going to affect an assessed value." It called BS on that statement, tell that to a relator and homebuyer that there isn't any difference between a 3 and 4 bedroom home. I even made a comment that if they think my house is worth what they assessed it at then by all means I'll sell it to them for that and take the $8000 in profit in just 1 year because they likely wouldn't get that if they put it on the market at the time. They eventually just lowered it to about $1000 over what I just paid for it a year prior but I was still irked how there was such a substantial value difference in the immediate neighborhood when all the houses were similar in actual market value.
My last home I successfully won a protest of the increase once. Not even a year after I bought it they increased the assessed value by 10.5% and about $8000 over what I had just paid for it. My main gripe was not only the value since there was just a recent sale on the property but compared to similar homes in my neighborhood I was valued way too high. The house right across the street from me was an identical house as mine as it was the same builder and floor plan built in the same year and their assessed value was about $17,000 less than mine. Several homes right on my block all built around the same time and similar size and market value were on average at least $15-$20k less which made no sense even with 2 of them on the same street that sold within the same year I bought mine 1 was valued as much as $28,000 less than what they just paid for it. I chose to do the in person protest option and presented all this info and also pointed out that they had my home listed as a 4 bedroom on the assessors page when it was only a 3 bedroom. One of the guys on the board said "being a 4 or 3 bedroom home isn't going to affect an assessed value." It called BS on that statement, tell that to a relator and homebuyer that there isn't any difference between a 3 and 4 bedroom home. I even made a comment that if they think my house is worth what they assessed it at then by all means I'll sell it to them for that and take the $8000 in profit in just 1 year because they likely wouldn't get that if they put it on the market at the time. They eventually just lowered it to about $1000 over what I just paid for it a year prior but I was still irked how there was such a substantial value difference in the immediate neighborhood when all the houses were similar in actual market value.
If you want to read more about the rules they've made up and the process I found this link. The first couple pages are interesting.
https://tax.iowa.gov/sites/files/idr/documents/EqualizationReport .pdf
Increases in actual values beyond the 4% growth ceilings are offset by “assessment limitation factors”. For example, if actual values increase by 10% for agricultural properties and 5% for residential properties in a given year, each would be limited to an increase in taxable value of 4%. Agricultural property, however, would require a greater reduction in its assessment limitation factor than would residential to achieve the necessary rollback. A further ramification is that the assessment limitation factors can increase in years where actual values decline or increase by less than the 4%, thus helping to mitigate the assessment limits extended in prior years.
Increases in commercial and industrial taxable value were also limited to 4% annually, although the maximum increase for each class is not tied to the lesser of the two as it is for agricultural and residential properties.
Because actual values for agricultural and residential properties have generally grown more rapidly than commercial and industrial values, the ratio of taxable to actual values for agricultural and residential properties is far less than the ratio for the other two classes. As of 2012, the ratio stood at 43.4% for agricultural property, 52.8% for residential property, and 100% for commercial and industrial property. Tax rates are applied to taxable values and, due to these disparities, effective tax rates are higher for commercial and industrial properties than for agricultural and residential properties.
https://tax.iowa.gov/sites/files/idr/documents/EqualizationReport .pdf
Increases in actual values beyond the 4% growth ceilings are offset by “assessment limitation factors”. For example, if actual values increase by 10% for agricultural properties and 5% for residential properties in a given year, each would be limited to an increase in taxable value of 4%. Agricultural property, however, would require a greater reduction in its assessment limitation factor than would residential to achieve the necessary rollback. A further ramification is that the assessment limitation factors can increase in years where actual values decline or increase by less than the 4%, thus helping to mitigate the assessment limits extended in prior years.
Increases in commercial and industrial taxable value were also limited to 4% annually, although the maximum increase for each class is not tied to the lesser of the two as it is for agricultural and residential properties.
Because actual values for agricultural and residential properties have generally grown more rapidly than commercial and industrial values, the ratio of taxable to actual values for agricultural and residential properties is far less than the ratio for the other two classes. As of 2012, the ratio stood at 43.4% for agricultural property, 52.8% for residential property, and 100% for commercial and industrial property. Tax rates are applied to taxable values and, due to these disparities, effective tax rates are higher for commercial and industrial properties than for agricultural and residential properties.
Anybody have experience fighting this type of increase? We just purchased a home last year and it went up 20% from last year. However, it still 12% lower than we paid for it.
Yes, we bought ours for 25k less than assessed value and presented that and they looked at comps and lowered it.
It didn't cost a thing.
Ours went up 10% in the Urbandale area. In fairness we've had a lot of work done to in the past year. Certainly in the last 3 or so.
Timely article from the Reggie:
http://www.desmoinesregister.com/st...got-you-mad-hell-heres-how-protest/100043038/
http://www.desmoinesregister.com/st...got-you-mad-hell-heres-how-protest/100043038/
The small warehouse our company rents in CR went up from $140k to $200k.
It was reduced significantly after the 2008 flood, but they had "de-flooded" it upwards to $140k already a couple years ago. The assessment is probably pretty close to market, but it's just insane that they do it so much at one go. Almost a 50% increase in one shot.
It was reduced significantly after the 2008 flood, but they had "de-flooded" it upwards to $140k already a couple years ago. The assessment is probably pretty close to market, but it's just insane that they do it so much at one go. Almost a 50% increase in one shot.
I just purchased a home last year and was hoping someone could answer a question for me. When you access the 'Market Adjusted Cost Report' on the Polk County Assessors website for your property, where do the values in the 2nd to last column come from?
It looks like they take numbers from your property (could be square footage, number of bedrooms/bathrooms/etc) times this arbitrary number, however it varies greatly from property to property.
Our neighbor across the street has an identical house and lot size, same specs on the finished basement, however mine is assessed 13k more because the numbers in this column are higher across the board.
It looks like they take numbers from your property (could be square footage, number of bedrooms/bathrooms/etc) times this arbitrary number, however it varies greatly from property to property.
Our neighbor across the street has an identical house and lot size, same specs on the finished basement, however mine is assessed 13k more because the numbers in this column are higher across the board.
