Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, February 14, 1993 TAG: 9302120254
SECTION: BUSINESS PAGE: F-1 EDITION: METRO
SOURCE: CHARLYNE H. McWILLIAMS STAFF WRITER
DATELINE: LENGTH: Medium
MARKET VALUE KEY TO OPEN APPRAISAL LID
Some Roanoke Valley homeowners probably got a rude awakening recently when they opened the mail to find real estate assessments had not declined during the slow economy.Why? As our parents use to say, because.
Consider a few factors. The real estate market in the Roanoke Valley was able to ride the rough tide of the economy and stay pretty much unsoaked. That means home sales increased and the price of houses actually went up about 3 percent.
"It's an active market compared to a couple of years ago," said Will Claytor, director of real estate assessments for Roanoke.
Let's see if we can make this as painless as possible.
Virginia state law adopted in 1976 mandates that localities bring their assessment value up to 100 percent of true market value, generally the selling price of a house. But if the locality is at least 70 percent of the market cost, it's not penalized.
"Assessment is just good for one point in time," Claytor said. "They change from day to day."
That's one of the reasons given by Stephen Hoover, a broker with Mastin Kirkland and Bolling Inc., to explain why real estate agents generally don't pay much attention to assessed values when it comes to pricing a home. They base the asking price primarily on market comparison and the condition of the house.
"Assessments are not really dependable in a setting of market value," he said.
However, it is a good idea for a prospective buyer to check the assessment and compare it to the asking price of the house.
According to the Virginia Department of Taxation, Roanoke's assessments equal on average 92 percent of the fair market value in the city. Roanoke County is at 90 percent and Botetourt County is at 78 percent.
Factor into the comparison Roanoke's tax rate of $1.25 per each $100 of the assessed value, Roanoke County's rate of $1.13 and the 75-cent rate in Botetourt County.
The median sales price of a home in Roanoke is $50,000, Claytor said; meaning the tax bill on such a home would be $625 a year. The median sales price in Roanoke County is about $80,000, and the taxes there would be $904. In Botetourt County the median sales price of a home is about $88,000 and taxes would be $656.25 a year.
"The market value is the target," Claytor said, "and it's ever moving."
Look at neighboring Botetourt County, which has a population of 26,000. Because of its population, the state law gives Botetourt the option of updating its assessments every five to six years. This year the county went to the five-year system and hired Roanoke's Windgate Appraisals and Mapping Service to do the job.
Steve Wampler, commissioner of revenue in Botetourt, said county officials weren't raising values just for their own gratification. People who work in these offices have to pay along the same lines as everyone else.
"We're trying to bring everything up to the state code," he said, patting the thick, intimidating book of state regulations. Remember, it says 100 percent of market value in that book.
Ah, is why values increased for about 90 percent of the properties in Botetourt County and 50 percent to 60 percent in Roanoke. About 85 percent of the homes in Roanoke County got increases this year.
Here's how the reassessment process works, according to Claytor:
A legion of 11 appraisers is responsible for 19,000 parcels of real estate in the city. Claytor said they get out and actually walk the property. They look at the "bone structure," which includes the roof and foundation of the house and the sales price of comparable houses in the neighborhood. Appraisers find out the details about the inside of the house by either talking to the homeowner or having the homeowner call or write to the office with the information. So, they really don't sit in their offices and pull values from midair.
If a homeowner doesn't agree with his assessment, he has the right to appeal. After having a person explain the process, Claytor said homeowners generally are satisfied with the appraisals. More often than not, the homeowners reveal nuggets of information - a finished basement or extra bathroom - that the appraisers hadn't taken into consideration and which would have increased the value. In those cases, Claytor said, he doesn't believe in raising appraisals - but the appraisers do keep them in mind for the next year.
Take heart, homeowners. You might find comfort in knowing where the money goes. It pays for schools, recreation, police and other such civic things.
Remember, living the American dream has its prices.
Charlyne H. McWilliams covers real estate for the Roanoke Times & World-News.
Memo: ***CORRECTION***