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Going up…again
The assessments for more than 90 percent of all existing residential and commercial properties changed this year. Last year, based on 2005 values, more than 90 percent of residential properties saw a change in their assessments while existing commercial reevaluations climbed 11 percent. The hike in assessed values this year was based on 2006 data before the slowing of the real estate market both locally and nationally. "There may be gloom and doom for real estate nationally, but Chesterfield County is doing very well," said Jonathan Davis, director of the Real Estate Assessor's Office. "It will be a tough year for us because the citizens may not feel the same as the reality of the market."
"By law, we have to reflect 100 percent of the full market value," continued Davis. "While we used 2006 real estate data, we also looked at 2007 trends to make sure homes hadn't declined in value." The average selling price of a new Chesterfield single- or multifamily home in 2005 was $319,000. That figure grew to $335,900 in 2006 and $359,500 in 2007. Sales of condominiums and townhouses have been increasing lately as a percent of all residential sales, probably reducing the increase in average price. The average price of all Chesterfield homes listed with the Multiple Listing Service (MLS) increased 12 percent from 2005 to 2006 while the number of closings declined 8 percent. The average MLS price increased just 3 percent from 2006 to 2007 while closings slumped 25 percent. "The downside of the numbers is that we are just looking at homes that sold," said Tom Tyler, residential analyst of Integra Realty Services. "Some properties may have been on the market for a year or more with the owners cutting the price to attract buyers. These homes don't show up in our figures." County resident Alan Francario has been trying to sell his home in the Highlands for less than the assessed value for over a year without any purchase offers. Now with an 11.6 percent increase, his asking price is 23 percent below the assessed value. Francario cites figures from www.zillow.com indicating the market value of his home declined 4.4 percent last year. The Internet site purports to measure the market value of individual homes nationwide. In an e-mail to this newspaper, Francario wrote, "Even more interesting will be the board's reaction to the economic retraction underway. Their response, in the form of significant austerity measures, must be reflected in the new budgets. Taxpayers are well aware that the past supervisors allowed budgets to balloon over the past three years while [property] valuations were soaring." In order for property taxes to be revenue neutral, the tax rate would have to be dropped this year from its current 97 cents per $100 of assessed value to 88 cents. That county board decision will be made in April, but dropping the rate that much is not likely. The county budget that's now under development is being figured using the current property tax rate. Thanks to ever-increasing assessments, property taxes are likely to be the county's top revenue generator. Last year, when projecting revenues for the FY2009 budget, Chesterfield Director of Budget & Management Allan Carmody projected growth in real property values at 11.8 percent. "The assessments are not influenced by the county budget, and by law, the supervisors are not involved in the assessment process," Davis pointed out. About 66 percent of the real estate taxes go to the county school system with the county government keeping the remaining 34 percent. The value of all property in Chesterfield climbed 13.5 percent over last year to $32.6 billion. That includes the assessed value of new and existing agricultural, commercial and residential properties and tax exempt properties. Countywide, 1,330 tax exempt properties, mostly churches, were appraised at $1.65 billion but are not assessed. As a market indicator, there was a decline in the assessed value of new residential properties (see chart), but new commercial construction jumped to its highest ever: $225.4 million, a 34 percent increase. New commercial construction was almost three times the level of three years ago. To be more customer-friendly, the assessor's office developed a new brochure that was sent to all property owners whose assessment changed this year. It explains how the assessed value is determined and answers frequently asked questions. The assessor's office plans to soon purchase the latest in technology to help assess properties. Pictometry, which uses 3-D digital photography taken from airplanes, will help assessors visually inspect the outside of buildings and measure heights and lengths. Additions and decks built without the necessary permits will be easy to spot. There are 16 persons assigned to assess residential properties. They study the sales prices of similar homes in the immediate area, and similar homes with unique features such as those fronting on lakes or golf courses usually have higher assessments. Six people monitor commercial properties. With almost 116,000 residential/agricultural properties countywide, Davis estimates his staff gets out to each home every 4-5 years. Much of the data they study is online and available to citizens. Real estate values are public information and are available on the county's Web site at www.chesterfield.gov by clicking on the link for "real estate assessments." The assessor's office will give you the comparative data it used. To prove your property is assessed too high, you have to do more than say you feel it's too high. The process begins by calling the assessor's office at 748-1321. Ask for an appeal application form, which has to be completed and returned by Mar. 15. Generally, there are two ways to substantiate your case: contesting the accuracy of the data the assessor's office has on your house or the comparative values it used to arrive at the assessment value. After submitting the form, a county appraiser will review the property by conducting an onsite inspection. If the citizen is not satisfied, the case may be taken to the Board of Equalization by Apr. 15, a court-appointed panel of property owners. There, the property owner can argue his case or watch the board review his submittal. The final arbitrator is the circuit court. There are also partial tax exemptions for rehabilitated or renovated buildings and for commercial and industrial properties in an "enterprise zone." Call 796-7123 for information. Tax relief is available for seniors ages 65 and older and those permanently disabled if their annual household income is less than $52,000 and their net worth is less than $200,100. Net worth excludes a house and the first 10 acres of land. The maximum allowable relief is $2,000. For more information or applications, call 748-1281, e-mail cor@chesterfield.gov or visit www.chesterfield.gov/comrev.
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Holiday Celebrations 2008
Fall & Winter Guide 2008-09
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