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County reappraisal values show 18% increase for homes, 31% land

The State of Tennessee requires that property reappraisals must be conducted on four, five or six-year cycles. In Johnson County, the property assessments occur every five years. Property reappraisals were recently conducted and have been sent to property owners.
According to Johnson County Assessor of Property, B.C. Stout, the current property reappraisals are reflective of the values that spanned the previous five years from 2006 through 2010. The reappraisal takes into consideration property values from the highs of 2006 and 2007 to the more recent decreased values in the past two years. These reappraisals include land properties and housing. The recent reappraisal notification that homeowners received was an approximate 18 percent increase over the previous appraisal completed at the beginning of 2006. Landowners have seen an increase of approximately 31 percent in the same time period. An appraisal is considered to be an estimate of the potential selling price of land or a residential unit.
Stout explained that the state mandates the values associated with the property reappraisals. In new construction, this includes imputing measurements, the year built, the size of the house and the type of materials used in the construction. Information on property and housing is coded into a system in place by the State of Tennessee. Once the property is appraised and classified as to whether residential or farmland, the statutory percentages are applied. This then determines the assessment or value of the properties. Once values are entered and set, it cannot be changed. The State of Tennessee is responsible for determining the reappraisal amount. The Assessor of Property's office enters the specific information on the house or property. From there, the information is formulated and a value is assigned. If a taxpayer does not believe their property reappraisal is accurate, they can come before the State Board of Equalization to dispute the matter.
According to Stout, the appraisals of the property or house will remain constant for the next five years, regardless of the real estate market. The city officials and county commissioners must set the tax rate to be applied to the reappraisals each year. For residential reappraisals, 25 percent of the value is taxable. This percentage is set by the State of Tennessee. The current tax rate for the county is $2.03 per $100 of the taxable amount. In the last five years, the tax rate has remained unchanged. While the reappraisal amount will not change, the tax rate can change from year to year. The tax bills are sent out and collected by the county trustee and city officials.
Ann Cornett is an associate broker at Ace Realty, located in Mountain City. According to Cornett, she believes the new reappraisals will close the gap between the previous assessment in 2006 and current prices, bringing the value closer to market values. Cornett explained that the real estate market continues to be a buyer's market. The large number of foreclosures has dictated the prices that sellers can get from their property. “It's not a time to sell right now if you don't have to sell,” said Cornett. She gave a lot of credit to Stout and his office for gathering as much information as they can about each property. Although each real estate office is different, Cornett believes the real estate market is beginning to head in a positive direction.
Cornett has seen an influx of potential buyers from Washington State, the Charlotte, North Carolina area, Connecticut, New York and the Carolinas, as well as international prospects. “Florida is not the big drive right now,” said Cornett. She added there has been an increase in the number of people who are choosing to rent at this time rather than buy a house. Ace Realty is hopeful that potential buyers on the fence will be stimulated into buying as interest rates begin an increasing trend.