Property assessments in a down market

All counties in Georgia are subject to the same state laws regarding property assessments for taxes. Although this story in today’s news from coastal Georgia is about Glynn County, the article does a good job of explaining why county assessments in Georgia may not capture the full decline in a property’s fair market values even when real estate is weak.

“Property tax digest may see little change”

4/19/2010

By NEVIN BATIWALLA The Brunswick News

Some homeowners hoping for property tax relief may be in for a rude awakening next month when Glynn County releases new property valuations.

While a small number of homes will drop in value, resulting in lower tax bills for owners, thousands of parcels won't dip in value at all.

How can that be when it seems almost everyone's house has lost value in an unprecedented nationwide real estate meltdown?

To determine what a house is worth, the county uses a complex mathematical system based heavily on sale prices of other houses in a neighborhood.

In years with a lot of sales, it works well because appraisers have more data from which to calculate a more accurate value for similar houses.

But when houses are not selling, as in today's weak housing market, it becomes more difficult to determine a true value.

"Our system doesn't work as well in low sales," County Chief Appraiser Bobby Gerhardt said.

As a result, homeowners in neighborhoods in which no houses have been sold will likely see no change in their values, he said.