Lyon County Appraiser - Gary Post
March 19, 2008
Lyon County Appraiser Gary Post will answer your questions on real estate appraisal notices that property owners received recently or the appraisal process.
Moderator: Today, we’ve got Gary Post, Lyon County appraiser, in The Gazette newsroom answering your questions. Gary took the Lyon County post in 1999 after serving as appraiser in Barton County and Seward County. We have received a number of questions in advance, but will continue to accept questions through the Web site until the chat ends at 2 p.m. Remember to click the Refresh button on your browser to keep up with the chat. Let’s get to it.
jcwhit232: How is it that the appraisal value can keep going up by thousands of dollars each year when the housing market has dropped so drasticlly? How can you compare a house that was built in 1999 with 11 acres to a house that was built in 1963 without any remodeling being done to it and has less than 2 acres?
Gary Post: One often reads that the housing market has gone south; usually they are referring to the national market or locations where there are many foreclosures. The median sale of a home nationally has come down, according to the National Association of Realtors it is still $206,200 for the fourth quarter 2007. The average sale of a home in Lyon County including Emporia just hit $100,817 for 2007. Properties in rural Lyon County saw a large increase based on market model done in our office for this year’s value. People seem to be willing to pay a premium to move to the country. An owner may request the sales comparison sheet that the appraisal staff used in the field to help them estimate the 2008 county valuation. I also highly encourage owners to request an informal meeting or at least go to the county’s Web site (http://www.lyoncounty.org ) and review the data the county appraiser has for their home and then look at and compare sales.
nutsaboutools: Hi Gary, 1. First I'm interested in the basis for the latest increase in assessed value. My assessment went up nearly $6,000. I've made no improvements in the last 2 years and the homes in my area that have been on the market and have sold, are selling for less than the owner's original purchase price. 2. What is the procedure for challenging the assessment? What information will I need and where do I go? How long (how soon) do I have to challenge the assessment (deadline)?
Gary Post: All home values are based on sales of similar properties. An owner does not have to make improvements for sales to indicate what the buyers in the market place are willing to pay for like properties. So even though the owner made no changes to his home and it is not for sale, the appraised value may have been increased to reflect those sales. We would want to look at style, size, age, grade among other features for a subject home, as well as the sales that occurred prior to January 1, 2008.
Gary Post: Call 620.341.3302 to schedule an informal meeting. Bring pictures, appraisals, cost estimate for needed repairs or sales of similar properties that occurred prior to January 1, 2008. This appeal window is open until March 31, 2008.
moderator: Posted by cloud (anonymous) on March 17, 2008 at 12:28 p.m. (Suggest removal) Do you honestly think I could sell my house for the amount at which it is appraised?
Gary Post: The January 1, 2008, value posted for any home is based on sales data and comparing the unique features of each home to at least three and usually five comparable sales. By Kansas Statutes, the county value should be between 90 and 110% of the sale value of a home or commercial property. If an individual does not believe that the county value is appropriate, I recommend an appeal. If the owner is not satisfied after the informal meeting, they may go to the Small Claims Division of the State Board of Tax Appeals (BOTA), and from there to BOTA. Under current law the owner may then take his appeal to District Court, and then to the Court of Appeals for the State of Kansas. As one can see, the county appraiser is certainly not the last word when it comes to values.
poacher: If people appeal their valuations do you remember them and then really stick it to them in following years?
Gary Post: The county appraiser , by law, must note any decrease through a prior year's appeal, because without substantial and compelling reasons that property may not be increased. Substantial and compelling reasons could be things like major additions or outbuildings or finishing a basement. After the "year of rest," the county value must once again refect the current sales market trends.
quarterback: How do Emporia valuations compare with other towns around Kansas? Is there a website that compares the work of County Appraisers?
Gary Post: The same criteria is in place to value property for Ad Valorem Tax purposes whether a home is located in Olathe in Johnson County or Emporia in Lyon County or Johnson City out west in Stanton County. It is a sales based system and if $100,000 would buy a 900 Sqft home, a 1200 Sqft home or a 2000 Sqft home based on sales they should all be valued at close to $100,000. The Division of Property Valuation under the Secretary of Revenue keeps tabs on all county appraisers. If you go to www.ksrevenue.org/pbd.htm you will find Ratio Studies, Statistical Reports of Property Assessment and Taxation for each of the 105 Kansas Counties.
esuphi448: I recently bought my house in June of 2007. When the bank had it appraised, it was around $67,000. I received my 2008 notice that my house was appraised at $58,300. Now, I do agree more with the county appraisal than the bank appraisal, but why do you think there such a difference in appraisal amounts? Thank you for answering my question.
Gary Post: Appraisals, whether they are done by a fee appraiser for a lending institution or the county appraiser for Ad Valorem Tax value, are an estimate of value as of a certain specific date. A valid arms length sale is the result of a willing buyer and a willing seller, with neither acting under duress, coming to an agreed price, assuming there was sufficient time to the market. I would expect that the 2007 county value was within ten percent of the 2007 sale, but if it was not, then the 2008 value estimate should have taken the June sale into account and been adjusted either higher or lower to move closer to the sale price.
create: Will you please discuss the difference between improvements and repairs. If repairs are made to an existing feature like a porch, I don't believe that should signal a raise in taxes, but it has happened to me. Also, why is it that taxes go up in a year when no improvements or repairs are made? Also, how does my neighbor's house, which is in a bad state of repair, reflect on mine with regard to taxes?
Gary Post: The minute the last nail is driven and the last board is painted a property begins to deteriorate. When a property is maintained and repaired it is going to keep its value when compared to the home which has no maintenance. If you are going to sell a home that has a porch in need of repair, the buyer is going to factor in the cost to repair the porch in any offer he may make. If you repair the porch and put the property on the market, you may not recover all the money you spent on the porch, but a buyer will recognize that this is well maintained property and offer accordingly.
Gary Post: This is a sales based system. Lyon County Appraiser Office puts field appraisers in front of the home each year to make a decision as to value based on the sales, neighborhood location and condition of the home. Every six years data collectors and or field appraisers do on site inspections of all parcels with an interview or a door hanger for the owner to recap the data on their parcel.
momus: In your opinion, could altering the current appraisal methodology to include more property appraised on a "highest and best use" standard discourage dilapidated rental property and encourage turnover of empty speculative property?
Gary Post: Wow! A very interesting question. The 1984 Society of Real Estate Appraisers Real Estate Appraisal Terminology, Revised Edition put forth the idea that: “The existing use will continue, however, unless and until land value in its highest and best use exceeds the total value of the property in its existing use.” That is why in most cases, as the standard is defined, the current use tends to be its highest and best use. I’m not sure how the standard could be altered to discourage depreciating properties or to encourage turnover of a vacant property. Zoning or other governmental actions could impact properties in the market place.
esuhornets: Gary you said nationally the housing market has come down do you not think it has here locally in Emporia? It sure seems to me there are a ton of houses on the market and they aren't selling for the apprasied value. Also how does a home owner that has an old house show that his value is going down on his house?
Gary Post: Everything we saw up to January 1, 2008 indicated that properties were showing an increase overall, although a very small increase for homes built after WWII. Sales that occur this year will be used to set next year's values. In a informal meeting the owner will want to show any problems with their home which may impact value. Pictures are helpful.
emporian: Are people required to allow the apprasier's office into their homes to do an assessment?
Gary Post: No, you do not have to allow folks from the Appraiser Office into your home. We may ask, but it is your decision.
moderator: How much did house valuations go up this year? If houses are selling for less does that mean your valuations will go down?
Gary Post: Residential class values increased overall by less that 3% this year, the smallest overall increase that the county appraiser has had in ten years. That total value included new construction. Some homes, based on the sales, may have larger increases than the overall percentage. Last year, 2007, 66% of the sales sold for more that the 2007 posted county value. The residential ratio was 96.6%, meaning that if a home sold for $100,000 the county value was $96,600 on average. Because it is a sales based system, if houses sell for less, then values should decrease and be reflected in the next year’s January 1, 2009 value. It should be noted that a lower valuation may not mean a lower tax bill in 2009, because the mill levy (city, county, school) may increase to generate the approved budget the local units of government need to operate.
moderator: How will the Tyson situation affect house valuations?
Gary Post: That announcement came after 1/1/2008, which is the assessment date by law in KS. Because it is a sales based system, those sales that occur this year will be in the mix to determine the value as of January 1, 2009.
moderator: When should people appeal their valuations? How many get overturned every year? How does the appeals process work?
Gary Post: Property owners may appeal during the 30 day window after their notices are mailed. This year the appeal window is open until Monday, March 31, 2008. In recent years the number of appeals has been less than 3% of the total parcel count. Last year there were 252 parcels appealed less than 1.5%. Approximately half of those appeals may see some sort of change. The phone number to call and set an informal meeting is 620.341.3302
moderator: How can people research property values in Lyon County?
Gary Post: In the county appraiser’s office there are books with all 17,800+ parcels listed. Owners may also go to http://www.lyoncounty.org and click on the Appraiser Department, and then on Parcel Search, enter sales as user name and sales as password. Once there, owners can search by parcel number, appraised value, owner’s last name, Section/Township/Range, property address as well as sale prices. After the appeal window closes (March 31, 2008), the sales data is no longer available on the web site, but parcel data remains on the site at Parcel Search Public. Also on the Appraiser web page is the Market modeling study under Legal Notice 2008, a 20 year Sales History, and 2008 Lyon County Value History by total class for the last five years.
moderator: How much did business valuations go up this year? If so how much?
Gary Post: Total commercial class was valued almost 11% more than last year. It should be noted that those totals include new construction, and any properties whose exemptions had expired according to their agreement with the City of Emporia. Total commercial class value for Lyon County was $198,053,560
quarterback: With so many vacant businesses in downtown Emporia will that lower valuations for other businesses downtown? Do businesses on the west side of town pay more in valuations?
Gary Post: Business buildings are valued usually by a cost approach to value (Cost New-Less Depreciation) or an income approach to value (Capitalized Net Income). Both are tied to and based on sales. If owners (landlords) must reduce their rents to get a tenant, that may decrease the income stream and have an adverse impact on sales. All valuation estimates by the county appraiser are public information and can be reviewed on-line or in the appraiser office.
Moderator: Our thanks to Gary for staying beyond our 2 p.m. stop time to answer some more questions. Still, I apologize because we were unable to get to all of the questions. Thank you, readers, for sending them. We’ll publish a transcript of today’s chat in the Thursday edition of The Gazette. The contents of the chat will continue to be available online at www.emporiagazette.com.