Home assessments more accurate than you think, appraiser says

A St. John's real estate appraiser says he advises the majority of homeowners not to appeal their property assessments.

• St. John's property taxes poised to rise in 2016 city budget

Jerry Kirkland, a senior partner with Kirkland, Balsom and Associates, is primarily a commercial appraiser.

However, he told CBC Radio's St. John's Morning Show he's received manycalls from concerned homeowners who saytheir property has been wronglyappraised.

On average, Kirklandsaid, residential assessments have increased by 15 per cent while commercial assessments have gone up about 20 per cent.

[You]don't actually buy a house, [you] buy a location.- Jerry Kirkland, assessor

"In most cases, it's not over-assessed," he said.

The problem isthe lag time between when assessments are done and when they are sent to homeowners.

Base date confusion

"The assessors do not want to be in court ... But it is confusing because the base dates are two years behind when you receive them so there is some confusion."

"What you have to do is look at what a buyer would have paid you as of the base date," he said.

"You see a date Jan. 1, 2014. So the question is, would you have been able to sell your property for the value of the assessment, and that was two years ago."

In most cases, he said, assessments are actually below market value.

Kirkland said the market hasn't changed dramatically. If sales are down, average prices can still increase if homes are listed at a higher price point.

"We're seeing in the St. John's market [that] well-located, well-priced and good shape [homes are] selling."

Biggest house on the block?

Kirkland said when it comes to value, people "don't actually buy a house, [they] buy a location."

When filing an appeal, hesaid, people should consider what neighbouring homes are selling for.

"Which means that the maximum your property can be assessed at is market value, but if there are other properties [nearby valued at] less,there is a consideration ... that would have it move back."

In his experience, those living in the "biggest house on the street" are most likely to be over-assessed.

In those cases, he said, assessors may have used a rate-per-foot system, putting the property at a much higher price than neighbouring homes.

Homeowners have until the end of the year to file an appeal, Kirkland said. The process costs about $60.