Revaluation (aka reassessment) seems to be the talk of the town lately and the questions it has raised are plentiful:

• Should I appeal my property revaluation or not?
• Am I being treated fairly?
• Is it true that Fair Market Value, Appraised Value, Insured Value and Assessed Value can be the same? If so, isn’t that a rare occurrence?

Let me start with the last question first. I want consumers to know that the Insured Value is probably the highest and should be given that replacing something is the most difficult task to complete.  Insured Value is all about replacement costs, not fair market value.  If your home burns to the ground, you need to replace and rebuild.

Now, let’s talk revaluation.

The first thing every consumer wants to know is, “What is my home worth?” Fair Market Value is what a “ready, willing and able” buyer and seller agree to. It is not an exact science.  Even an appraisal is just one person’s opinion based on sales and a formula of reproduction costs minus depreciation. When it comes down to it, we want our home value to be one thing when we sell and another when we buy.

Assessed Value is meant to be within 10 to 15 percent of Fair Market value which is called into question when a neighborhood has a few short sales or bank-owned properties.  So what is the assessed value?  Right now, it is the value that is causing the drama when a county like Mecklenburg goes through the reassessment process for the first time in years. It is the value that is raising the question, the concerns and the confusion.

But it is also the value that reaffirms the importance of consulting your Realtor® and trusted advisor. We are here to answer your questions and help you determine whether or not you are going to appeal your new property assessment.

At Allen Tate, we have created a valuable resource to help you navigate through this process. Simply go to our homepage and visit the Property Revaluation section. We have the supporting data to help you understand why your property was assessed at a certain value, how to appeal if necessary and what your next steps are.

The only reason this year is unique is the fact that so many homes rose in value and have now depreciated. As a result we must find the new market value in each neighborhood and that takes time. Many neighborhoods are there and some have a way to go.  How long will that take?  When the appraiser, the lender, the Realtors and the buyers and sellers all have a good sense on the new value system in an area … that’s when the new market value will be determined and accepted.  This dose of medicine we are taking called reassessment will help us as a community get closer to those values so we can move on.

No matter the amount of taxes we inevitably will pay, we are blessed when compared to many other areas throughout the country. Growth has kept those taxes down, and growth plus prudent government spending can and will keep it that way.

By Pat Riley