Kitsap Peninsula Business Journal
6-13-2003
SPECIAL REPORT - REAL ESTATE ON THE PENINSULA
Appraisal first step toward property taxes
By Temple A. Stark

Total assessed value is determined by the assessor’s office based on recorded sales of homes in the immediate area.

Sales are categorized in 85 geographical areas in Kitsap County.

Each has seen values go up, some more than others.

“In the last few years there have been between 5,000 and 6,000 (home or land) sales every year,” said Kitsap County Assessor Jim Avery. “You rarely see a price go down. Homes are investments.”

All homes in Kitsap County must undergo a site visit and visual assessment valuation every six years. Assessments the other five years are based almost completely on price comparison against sales in the area.

“The biggest changes come from surrounding sales, but visual appraisal shows us what we might have missed such as aging and weathering or additions,” Avery said. “Has there been siding or a new coat of paint? We expect people to do routine maintenance.”

Independent appraisal companies influence the closing cost of homes, on which property tax amounts are based. Paul Olson, of Paul Olson Appraisers, said he and other appraisers are called in to find the relative worth of a property. That can include disputing the county’s assessment, but is more often the result of different claims from Real Estate agents, homeowners or lenders.

“We’re paid to tell the truth,” Olson said. “There aren’t numbers written on the buildings so you are there to conduct an evaluation of a number of factors.”

The presence of children or dogs is considered. Landscaping, general wear and tear, colors, materials, location, small windows, square footage, bedroom count and bathroom count all add to the juggling act of an appraiser.

“Nothing is identical,” Olson said. “We compare everything to what has sold in the area and make our own appraisal.”

That can be harder with empty lots. Olson said he uses a mind-trick there or even at homes with acreage. He said he closes his eyes and pictures the house that should be there, against the backdrop of its surroundings. Then, with a solid picture in mind he opens his eyes and sets to work.

“The idea,” Olson said, “is make an estimation on the highest and best use of a property. Is it there.”

After all, everyone comparison-shops.

“Another way to look at house appraisals is, what’s a potato worth at Albertsons?,” Olson said. “Well you (as a consumer) can go to Safeway and if the price is cheaper they’ll sell a lot of potatoes. Albertsons, meanwhile, aren’t selling any at their high price and they have to look at, why?”.