Insider Secrets on the Auditor's Current Home Value

Background

Greg Swearingen spent a year working on designs and requirements for a Computer Aided Mass Appraisal (CAMA) system used by county Auditors. Combining this with over a thousand property valuations performed in central Ohio by The Selling Columbus Team our understanding of appraisal and property value far exceeds that of most realtors anywhere in the country. This article provides insider knowledge to the value you see for a property on your Auditor’s website.

Auditor’s Current Value is a Taxing Value

People ask us all the time about the value their Auditor’s office has placed on their home. Some say, “The value is too low!” This is often because people are thinking about selling their home or refinancing. If you are in this situation, then you like to see a higher property value. Others say, “The value it too high!” This is typically because they are paying property taxes. Property taxes are based on a value the Auditor’s office has placed on a property. For this reason, many property owners like to see a low value placed on their property.

Auditors in Ohio are required by law to have a personal review of every property in their county performed at least once every six years and from this determine the Taxing Value. In the middle of the six years a Computer Aided Mass Appraisal is performed and the computer performs a % up or down against your home’s current Taxing Value to determine the new Taxing Value. This % is to reflect what is happening to property values in your local area.

The value you see on your Auditor’s website is only adjusted once every three years, so the value you see on a property on an Auditor’s website can be almost three years old. This is why the Auditor’s current value is not necessarily “current.” This is why it is known as a Taxing Value by the insiders and appraisers who work on property values every day at your Auditor’s office. This value is used to determine property taxes, it is not the current amount you could get for your home should you sell it today. This is why it is referred to by insiders as the Taxing Value. See Ohio Revised code 5713.03.

The Affect of The Homestead Exemption

There is another factor that plays a significant role in the Auditor’s determination of a property’s Taxing Value, the Homestead Exemption. People either 65 or older or permanently and totally disabled may quality for the Homestead Exemption. The Homestead Exemption is a method used to lower taxes for those who have fixed income and need the assistance. You must apply for the Homestead Exemption and be approved in order to receive this tax deduction. If you think you may quality for the Homestead Exemption, apply with your county Auditor.

What does the Homestead Exemption have to do with Taxing Value? When the six year property valuation is performed personally by an appraiser of the Auditor’s office, if the owners have the Homestead Exemption, they artificially keep the property value lower than they might otherwise raise it. This is because Auditors do not want seniors and disabled people evicted from their home due to an inability to pay property taxes.

Summary

Auditors are very concerned with getting a correct Taxing Value placed on a property. They want to get the Taxing Value correct. Also, from having spoken with a number of Auditor’s they are also concerned about overtaxing. They do not want people paying more than they should and will traditionally under value a property rather than overvalue a property or this reason. Auditors tend to be conservative when it comes to placing a Taxing Value on a property.

When you see a value on property on an Auditor’s website keep these things in mind. As a general rule of thumb add 10% and you will get a closer estimate of what you could sell your home for in today’s market.