Twitty explains how higher assessments happen

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It's a good news/bad news scenario for Springfield homeown-ers. |ret||ret||tab|

Notices of change in real estate valuations recently sent out by Greene County Assessor Jean Twitty have stirred no little negative reaction from property owners. |ret||ret||tab|

According to Twitty, her office logged 2,200 calls disputing the new numbers in the first few days after the notices were sent. A new batch of 30,000 notices is currently in the mail.|ret||ret||tab|

Twitty said the assessor's office doesn't see any residential part of the city that is not appreciating in value, because even the lower-priced homes continue to appreciate "because they are affordable."|ret||ret||tab|

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Good news|ret||ret||tab|

The good news is that, in theory, homeowners will be able to sell their homes for fair market prices that are higher and in some case considerably higher than what they paid to buy or build them.|ret||ret||tab|

The bad news is a larger tax bill at the end of this year than most homeowners anticipated.|ret||ret||tab|

The assessments are usually performed every other year ending in an odd number, in compliance with state laws, according to Twitty. "Two years ago, however, our computer system was being upgraded to a new one, and we had too much data to transfer to be able to get the new system up on time. So the recent assessment reflects a four-year change, rather than a two-year change," she said.|ret||ret||tab|

Assessment delay|ret||ret||tab|

"We react to sales that are a year to several months old in this case from the last half of 1999 and all of 2000, " she added. "If there is currently a market downturn, we won't know for a year or so."|ret||ret||tab|

Twitty said that the assessor's office anticipates continued appreciation of real estate value, but that home sales information from 2001 and 2002 will reflect what has happened in the real estate market and therefore will determine the numbers when the 2003 assessments are made. |ret||ret||tab|

"Some neighborhoods go through a downturn and then rehabs happen, and they go up," she said. "The issue most folks have with our process right now is that they can't believe their property appreciated so much in four years. We assess at 80 percent of real market value, and hope we're in the range."|ret||ret||tab|

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Assessment basis|ret||ret||tab|

The assessors view only the outside of homes when physically touring neighborhoods, and since they cannot see interior remodeling, a house might be worth far more than they think. When the house sells, "we make up the difference," Twitty said.|ret||ret||tab|

Values, however, can change even when nothing is done to the interior. "People call and say they've done nothing, but even without changes a house can appreciate in value, even if the condition of the house is deteriorating," Twitty said. |ret||ret||tab|

She offered the example of an elderly couple who remain in the same house for 50 years without updating. |ret||ret||tab|

That they built it 50 years ago has no relevance to the market today, she said.|ret||ret||tab|

Computer appraisals|ret||ret||tab|

Each parcel is considered separately for an assessment. According to Twitty, Greene County uses CAMA (Computer Assisted Mass Appraisal) to log data for each residence. Information regarding the footprint (square footage), style, condition and age of the home is considered first. Then the number of rooms, and how many bedrooms and bathrooms exist are factored in. The current replacement cost is calculated, and then the appropriate appreciation, dependent on age, is determined. |ret||ret||tab|

Following that procedure, "We look at market influence," Twitty said. "Is this fitting, or are there adjustments that need to be considered regarding the desirability of the neighborhood, and what comparable property is selling for? She added that to fine-tune the numbers, "We use a replacement approach and then a market approach."|ret||ret||tab|

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Assessment formula|ret||ret||tab|

Greene County homes are assessed at 19 percent of market or value. Inside city limits, the levy is currently $4.48 per $100 assessed value. Twitty said this number may change in September when the assessment information reaches local tax entities, which due to the Hancock amendment are limited to a certain level of growth in their annual revenue. |ret||ret||tab|

She also pointed out that districts all set different levies, citing Battlefield's levy of $5.17 and Fair Grove's of $5.43. |ret||ret||tab|

Addressing public concerns about the recent change in local property valuation, Twitty said homeowners need to become informed critics, and then ask, "Is my property worth this much?" She urges homeowners to find out what properties are selling for in their neighborhoods, and said that her office is happy to meet with people if they think the new evaluation "grossly overstates the value." |ret||ret||tab|

"We will encourage people to come in with a current appraisal and discuss it. Or bring in a sales contract. They can bring in interior pictures to support their claims. Staff appraiser will inspect the property if necessary, and look at the condition, and any remodeling or updating."|ret||ret||tab|

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Appeals|ret||ret||tab|

A letter sent with the notice of change in valuation includes information on how to appeal an assessment. Twitty said the first step in the process is informal a phone call is adequate.|ret||ret||tab|

"We certainly have an open mind down here," Twitty said. "If homeowners just ask the question of sales value about their home, and then disagree with our numbers, they should give us a call. Right now is what we consider the discovery time to exchange information very informally."|ret||ret||tab|

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