• Where do my property tax dollars go?

Our tax insert, which was included with the most recent real estate tax bills, demonstrates how your tax dollars are used. 

• Why can’t foreclosures be used as comps?

Foreclosures cannot be used as comparables because an appraiser is required to do a “market value” opinion of value. Market value, also called true value, is a sale between a willing buyer and seller, with neither party under duress.  These sales are also known as qualified sales.

A licensed fee appraiser must follow USPAP (Uniform Standards of Professional Appraisal Practices). USPAP does not allow an appraiser to use foreclosures when conducting an appraisal. In addition to USPAP, your local tax appraiser is also required to follow North Carolina General Statutes.

Any statement made that appraisers should use foreclosures is inaccurate. 

• Why is the tax office using a different appraisal method than realtors are?

Realtors are not appraisers. Sometimes a realtor will offer a BPO (Broker Price Opinion). A BPO helps establish the price a property should be offered for sale. The NAR (National Association of Realtors) recently criticized some appraisers for using foreclosures, short sales, and run-down properties as comparables.

Even if the Realtor offers a BPO, the lending institution will still require an appraisal to be conducted by a licensed appraiser, and the appraiser will not be allowed to use foreclosures, as stated in the above question.

• Why are the lake properties increasing more than other properties in the county?

Revaluation requires that all properties be appraised at market value. Market value is based on sales. During revaluation, some properties will have increased, some decreased, and some will have very little value change. Person County had 300 qualified sales (a sale between a willing buyer/seller as discussed above) in 2012, and these sales were used to determine market value.

Not unlike past years, lake properties continue to be the most desirable properties in the county, as demonstrated by the prices paid for these properties. Below are the MLS (Multiple Listing Service) properties for sale as of February 1, 2013. As you can see, the new 2013 tax values are below the current asking price for most of the lake properties.

On January 31, 2013, we had a lake property that was valued at $488,862 (new 2013 tax value) sell for $1,000,000.  

Please click here for more information.

Property Address               Listing Price    2013 Tax Value     Difference