2008 assessments
From:
Dean Carlson
Date:
Mar 11 14:39 UTC
Short link
I agree with Annissa's first part of her post. I always like to point out the
case of 4200 Dupont Avenue South to show how the assessed value typically never
matches market value. Especially for high valued homes. Note: I don't
necessarily want to pick on 4200 Dupont but it's a big, beautiful house that I
know is going to be highly valued. I am sure someone could pull examples from
other homes.
In 2001, 4200 Dupont sold for $1,250,000. That same year it was assessed at
$668,500. In other words its assessed value was 60 percent of its sales price.
Now you could argue that assessor just couldn't keep up with values of homes
rising so fast. Problem is, 7 years after it sold for $1,250,000 it is still
only assessed for $1,140,000 (2007). Too bad the City Assessor doesn't have
some sort of mechanism to bring assessed value to sales price, once that
information is known. Here's the link to the City's property valuation page:
http://apps.ci.minneapolis.mn.us/PIApp/ValuationRpt.aspx?pin=98215
My own house is another good example. When I bought in 1996, assessed value
was 70 percent of sales price. Now assessed value and market value have gone
up significantly in the 11 plus years I lived there and although it's not for
sale, my back of an envelope market value tells me that 2008 assessed value is
about 75 percent of what I could get for the home if I wanted to sell. (I
don't). Not that I'm complaining mind you.
Dean E. Carlson
East Harriet, Ward 10
-------------- Original message --------------
From: "Anissa Hollingshead" <anissahollingshead@gmail.com>
> For a long time, it was a given throughout the metro that tax values bore no
> relation to market values. I bought my first house in 1998 in St Paul, well
> before the biggest part of our recent run up took hold, and the taxable
> value was 29% less than the price I paid for the house. Two years later I
> sold the house for 70% more than I paid for it, and the taxable value had
> only risen less than 10%, plus it was capped annually in the increase amount
> through the same process Eli referenced whereby his property is still not
> fully assessed for taxes at its determined market value.
>
> It seems just within the last 3-4 years that cities, including Minneapolis,
> have really agressively tried to bring assessed values up closer to where
> the market has been. Now, when the market starts to stall and in some areas
> even seemingly free fall, these cities face the dilemna of how to handle
> assessments. I was very interested to see how this would be handled by
> Minneapolis, and it appears that they are trying to react, which is good.
> If the assessed values in at least some neighborhoods did not go down at
> least some, it would be anticipated that the city would then have to deal
> with a large number of formal objections and create a lot more work and
> people hours. I give them credit for trying to get ahead of the curve to at
> least some degree. Also, I noticed there was a meeting time of some sort on
> the notice for residents to attend and hear an explanation of the valuations
> in general, as well as to speak individually with assessor's staff about
> their values if desired. Hopefully that can answer some questions and
> streamline the process of questioning values for both residents and city
> staff.
.