All posts in the topic 2008 assessments (Short link)
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- There are 16 posts — by 15 authors — in this topic.
- Latest post made by Carol Becker at Mar 13 13:01 UTC
The 2008 assessments are starting to arrive from the city assessor, and I've
noticed some unusual patterns so far. I'm curious what people out there have
experienced. Has your estimated market value gone up or down from last year,
and by roughly what percentage? Please list your neighborhood as well.
Steve Brandt
Staff writer
Star Tribune
Phone: 612-673-4438
Fax: 612-673-4359
425 Portland Av.
Minneapolis, MN 55488
Mine went down 4%. I highly suspect my taxes will go up (duh).
I have to tighten my belt, why can't government? I guess I'll just have to
harvest a bit more green off my money tree next to the strawberries.
Mike Thompson
Windom
Mine went down 11%
Tara Beard
Midtown Phillips
Up here in Columbia Park ours went down about $15,000 or 8%. Seeing as we
have at least 5 houses in the neighborhood ( and 1 lot ) that have been on
the market for at least a year I am not really surprised. It may get to
the point where they decide to add on additional bedrooms for those 2nd
babies. I feel the most sympathy for the person who transfered to Texas
because her job with Minnegasco transfered there with the buyout by
CenterPoint.
Liz Wielinski
( glad not to have used up all my equity in refinancing)
Mine went down just over 10%, to the price I actually paid for the house in
May 2007. Unfortunately, the actual market value at this moment is still
lower yet, although difficult to gauge when all that seems to be selling in
the area are foreclosures that have had their prices drastically slashed.
Technically, foreclosures shouldn't be taken into account in calculating
market values, but if all that is moving in the market is foreclosures, and
everything that is selling is dramatically "below" market, at some point
there obviously has to be an inference for the whole market there.
Anissa Hollingshead
Hawthorne
On Mon, Mar 10, 2008 at 2:13 PM, Steve Brandt <<email obscured>>
wrote:
All of you should consider moving to the Como neighborhood in
Southeast if you want your house to retain its value in a down
market: my 2008 assessment went down just 2.3%, compared to all the
8-11% figures I see everybody putting up here.
Connie
Como, in Southeast Mpls
We're in Prospect Park and our assessment went down by 12%.
Down $25k or 10% in Longfellow (Hiawatha)
My assessment went up $9,000 or 2%.
My taxable market value also went up by $9000 but it is still lower than the
assessed value
I live in the Linden Hills Neighborhood.
My assessment went down almost 10%. I was so happy thinking taxes would
go up minimally this year, but it sounds like I am no better than
average. Oh well.
I am curious where this all came from. It has been my experience that
it takes an act of God or a court order to ever drive down an
assessment. Somebody at city hall must have figured out that people
will complain less when their assessment decreases less than other
people's than when they get double digit increases. After all, it's the
folks whose assessment went down only a couple of percent who are going
to lose out here. Plus apparently the residents of Linden Hills, who
are getting totally screwed with actual increases. Or maybe only Eli is
special.
My assessment went down just under 11%. I live in Como Southeast.
Jeane
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.
I would expect that different neighborhoods would receive different
valuation changes. My home in Hawthorne, less than 5 years old, has always
been fully taxed at its assessed market value, not being subject to the
limited market value that residents of older housing stock throughout the
city have enjoyed to at least somewhat cushion their increases. Now, my
home has dramatically fallen in value. There is an identical GMHC built
home of roughly the same age as mine in the next block now on the market for
$95,000, or roughly half the market value of mine. It needs seome serious
cosmetics, but it still has its copper and mechanical systems intact.
Hawthorne has the highest concentration of boarded homes of any city
neighborhood, and boarded homes draw down neighborhood value faster than
just about anything else. My friends in Linden Hills, and also Bancroft,
don't face the same level of challenges to their values, and I would
frankly be outraged if they saw the same level of decreases to their
property values as my neighbors and I. It may also be the case with some
properties that their full market values (which as an aside may not yet be
fully reached for taxable amounts either) had not yet risen to where the
market truly was, and thus they aren't starting from the same peak level.
For this year my home was fully taxed at its assessed value which
represented a price almost $10,000 more than was paid for it previously at
the peak of the market, while similar homes are listed (and not selling) at
a fraction of that value, including the one mentioned at less than 50% of my
current year market value.
Regardless of individual assessed values, the city still needs the same or
more revenue. If the tax base is smaller, it seems to figure that taxes
will probably have to go up to compensate. Thus, any decrease in value
doesn't hold any promise of a decrease in taxes.
Anissa Hollingshead
Hawthorne
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
My house's assessment went down 4% this year. I'm in North Longfellow (2nd
block north of Lake Street). Certainly real sale prices have dipped a little
in this area, but not as much as other areas of the city I'm led to believe.
The old value is closer to what I think I could get for it on the market today.
But then again, most of us are likely overvaluing our houses in this depressed
market.
Derek Burrows Reise
Longfellow
14.7% decrease for me in Longfellow neighborhood. I'm still ahead of what I paid, when adjusted for inflation and also still ahead of what I paid for half of my house in 2001. For folks who have not seen it, there is a great chart at the beginning of this report which shows what is going on in the market. http://www.mplsrealtor.com/downloads/market/RREAR/RREAR_2007.pdf Basically, people can't sell for what they want so more and more houses are piling up on the market. At the same time, loans have tightened up significantly, so it is harder for people to buy. For people motivated to sell, they have to accept less and less for their houses, driving down prices overall further. It seems to be a pretty bad spiral. The other thing that happens, as prices fall, people are defaulting, reducing the amount of money available to loan, making it harder to get loans, making things worse. Clearly things are going to get worse before they get better. The one thing that should be a silver lining is that there should be some shift in property values away from homeowners to commercial/industrial property. That is one of the things that has really hit Minneapolis homeowners hard. It should also resolve the limited market value problem. Carol Becker Longfellow
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