Why did my value increase at a level different from others in my area?
There are numerous scenarios, which would affect the percent of increase from one year to the next on residential properties. In addition, this comparison is not a standard method or technique employed in the valuation process. Therefore, the focus should be on the current value, to see if it reflects market and whether it is valued fairly in comparison with similar properties.
I don't intend to sell my house, so why should my value be based on market?
The State of Alabama has an ad valorem tax system. An ad valorem tax is based on the principal that the amount of tax paid should depend on the value of property owned.
Why should I be penalized for somebody else paying a high price for a home in my neighborhood?
It isn't a penalty. If a number of homes similar to yours are selling for more, it increases the marketability and market value of your property.
How can my property's value increase when I haven't done anything to improve it?
Property values are based on the activity in the marketplace. Therefore, the most frequent cause of a change in valuation is change in the market or economy. If a certain neighborhood or community becomes a fashionable place to live, the change in valuation will be reflected by the prices paid for property. In a stable neighborhood, with no extraordinary pressure from the market, simple inflation may increase property value.
There are properties in my area with additions that the Appraisal Office hasn't picked up. My neighbors aren't paying their fair share. Because of this, my value should be lower.
The Lee County Appraisal Department will be happy to collect the necessary information and verify the listing information for those properties. However, this does not prove that your value is incorrect or that it should be altered.
The houses that sell in my area far exceed the house that I have and they have been remodeled. How can you compare my house with those?
We make an effort to identify properties of this nature and field check them to verify their listing information. Because we're working within a range of selling prices, one or two sales, which may have incorrect listing information, would not affect the value of your home. We could even eliminate them from our analysis and see if the value is supported by other sales in the area. If you would like to identify the properties, we can initiate field inspections on them.
I built my own home. It cost a lot less to build it than the value that you have placed on it.
Labor costs, material costs and the market value of the land are all factors associated with the cost to build your home. Even though one has built their own home, their house will sell on the market at the same level as other houses in the area built by contractors. The difference in value between what the property cost to build and what it would sell for is called "sweat equity". Therefore, the value assigned by the Lee County Appraisal Department is what the market indicates by utilizing a comparative sales approach.
I have an older home in an area where they are building new homes. How will this affect my property value?
In the valuation process, adjustments are made for age, type of construction as well as a number of other variables.
How can my property increase in value if it is getting older?
In order to establish a market value for your property we must analyze the market in your neighborhood. If homes, with similar characteristics such as age, in your area are selling for a higher price, then it would suggest that your property would be worth a similar amount.
What if I think the value is wrong?
If you feel the Lee County Appraisal Department has made a mistake in valuing your property, you may call the Office and ask your property be reviewed.
There are no paved streets in my area. I don't have trash pickup or other services. Therefore, my value should be lower.
Sales of properties in the same local would reflect the same conditions and therefore establish market and value.