So you've received a notice of assessment on your house and the notice states that if you feel that you could sell your house for the assessed amount or more the value is fair. We have gone to a "fair market system" now right?
Wrong!
Well, not necessarily...fair market value involves multiple approaches to value: replacment cost, sales comparison and income approach. Obviously the income approach doesn't apply to residential properties, but the replacement cost and sales comparison methods do.
The local assessor under state guidelines is using replacement cost with market multipliers and depreciation to determine your fair market value. What can you do? I recommend that every homeowner go to the assessors office and retrieve a copy of their "Property Record Card". This information sheet lists all the details of the valuation of your home. In replacement cost, value is determined by the actual improvements of the property.
Homeowners can take a half an hour with a tape measure and determine if the assessor's staff has actually measured the home correctly. I've seen 1200 SF homes measured at 1400 SF. I've seen basements assessed as comletely finished when in fact, they're completely unfinished. I've seen homes assessd as having a brick exterior when maybe only the front has brick. Perhaps the space above the garage is unfinished but because the assessor wasn't able to gain access to the home they assumed it is finished. I've seen simple data entry errors.
The point is this: your local assessor is a "mass appraisal firm". They have very little time in which they have to handle a very big job in assessing an entire township. By Indiana law, if a homeowner denies the assessor entry to a house, or if the assessor cannot gain entry due to work schedules, they have the right to ASSUME the interior details. By taking a little time out of your schedule to verify that the information listed on the property record card is accurate you can save yourself some cash. Most assessors have a desire to be accurate and they are generally very fair to deal with. Dont forget that they are elected and need your vote. They are a part of the community and have a job to do just as we do. If you do find an error with your assessment, stop in and talk to your assessor. I think you'll find them eager to fix any mistakes.
If this info happens to help someone out, I'd love to hear about it!
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