More than 97% of Johnson County homes increased in value this year. Here’s why it matters
Market values for homes are increasing in Johnson County. The county sent out valuations to homeowners earlier this week, and if it seems like your home’s appraisal value went up, it probably did.
These kinds of assessments are based on statistics that indicate the ongoing trends in the market area, and they affect how much you pay in property taxes.
When evaluating property, the county appraiser looks at a number of homes sold in the area and considers factors like the square footage, location, additions like porches, patios, garages, the finish of the basement and more to see how much a home is worth, according to Johnson County Appraiser Beau Boisvert.
Boisvert and his team do an analysis of home and home sales in the area to determine a base price for homes that are similar in nature. Then they assess how much value to attribute to different components of a home (a porch or a three-car garage, for example).
Here’s what else you need to know about how this year’s valuations might impact your home and your wallet.
How much did property values go up in Johnson County?
In Johnson County, 97.5% properties will see an increase in the 2022 valuations. Most properties in the county increased in value by 11%, according to a statement from the county appraiser.
Boisvert suggests that people be mindful when looking at their percentage increase versus the actual dollar amount increase.
“So just looking at the percentage sometimes skews the perception of the public, because they see a high percentage, but when they actually do the math, they find out the dollar amount change is really not that big of a change.”
Here’s a map to show how median home values in Johnson County have changed over the last four years.
How does the county decide these numbers?
The reason behind the increase is largely due to supply and demand in the housing market. Available Johnson County housing is in short supply.
“In Johnson County, there is a very high demand for wanting to move here and have a house, [but] you need to have a supply line to meet those demands,” Boisvert said. “You want to have about six months of [residential] inventory out there, for when the demand is coming in. We’ve not had six months worth of inventory for years.”
Boisvert added that having a lack of supply can cause multiple buyers to get into bid wars when a home does go on the market, which can drive the price of a home up by tens of thousands.
Interest rates can also play a part in increased valuations. When interest rates go up or down, it changes the amount of capital available to purchase homes in the first place.
“If interest rates go up, there’s less money to loan for buying the house. So that becomes a problem, because [if it’s a] 7% interest rate, that’s a huge chunk of money. You’re paying a lot above and beyond the purchase price of the home over 15 or 30 years,” Boisvert said.
Lastly, financial crashes and global events like the conflict between Russia and Ukraine can also influence the housing market down the road, but Boisvert said that it’s too soon to tell if that will make an impact on the residential market.
Will my taxes go up?
They could.
When valuations do go up like they did this year, the government can use those numbers to increase property taxes to support government services. The county will use these valuations to help determine the property tax rate, which the county commission will decide in its next budget.
“Think of taxation as a teeter totter,” Boisvert said. “One part of the teeter totter is the valuation, which is what my office does. We develop the fair and equitable values that are used for fair taxation. On the other side of teeter totter, is what is the actual [tax].”
To get an idea of how your appraisal could influence your taxes you can use an online property tax calculator.
Is there anything I can do about it?
When you do get your property valuation in the mail, there is a way to appeal the valuation if you think it’s unjustifiably high or low. Homeowners have until March 30, 2022 to appeal.
According to Boisvert, the backside of the notice you receive in the mail should include a form to start the appeal process. You can also find that appeal form also known as the Declaration of Representation form by visiting the county website.
“I would recommend that they give us any information they want us to know about their house that they think we don’t know, already know, like, maybe the basements leaking, or the roof needs to be replaced,” Boisvert said.
Once your appeal is submitted, the case will be assigned to an appraiser on Boisvert’s team. During this time, an appraiser may do a field inspection of the house. Homeowners can also ask for a meeting to discuss the details of the valuation with the appraiser’s office. Next, the appraiser’s office will notify you of their decision to either change the valuation or stand by their initial appraisal.
“We usually get about 6,000 to 8,000 appeals a year on an average. We usually see about 50% of those residential properties that appeal actually see some kind of a reduction,” Boisvert said.
If a homeowner is still unsatisfied after taking these steps, they can file an appeal to the Board of Tax Appeals.
“They have more of an objective viewpoint because they’re not from my office and not from the public,” Boisvert said. “They are professionals who have been in the real estate business for a number of years and understand the concepts of appraisal.”
Do you have other questions about housing, taxes or something else in the KC area? Ask us at kcq@kcstar.com or with the form below.
