2. Abatement hearing-Goodman - Laserfiche WebLink

INVESTIGATION OF ABATEMENT APPLICATION ABATEMENT #4287 Following is a report on the investigation of the abatement application of: Randy Goodman Cass County Board of Commissioners and State Tax Commissioner: The applicant is asking that the residential valuation be reduced from $109,300 to $90,000 for the year 2005 on his property located at 240 4th Ave W Hunter ND. Mr. Goodman states that he paid $90,000 for the property on 7-30-2004. The price stated on the deed (Doc# 1114163) states that the consideration was $92,000. Mr. Goodman indicates that the property was appraised to establish the selling price and that the appraised value was $90,000. The property was not listed for sale with a real estate broker. When it became known that the property was for sale, the buyer approached the seller and a price was agreed upon, using the appraisal as a guide. The Hunter City council recommended denial of the abatement. Earlier, the city board of equalization denied his appeal for the 2006 assessment. However, they did not raise the previous assessment of $109,300; whereas most other property values were increased for 2006. I did inspect the property and visited with the property owner. The 1,768 square foot rambler with attached double garage was built in 1981. It has a wood foundation with full basement that is mostly finished. Quality of constuction and condition is considered average. It is situated on a 75x150 comer lot. Mr. Goodman indicates that the residence is hard to heat, compared to a previously owned residence, and that the paint on the aluminum siding is peeling in certain spots. I did speak to paint consultant and he indicated that aluminum siding can be repainted with good results. Regarding heat consumption, ramblers are not as energy efficient as, say a two story home, because of the large amount of wall and ceiling area compared to living area. I'm also not sure if insulation has been added to the attic area. I reviewed the appraisal that estimated the property value at $90,000 as of April3fd, 2004. The appraisal listed three comparable property sales in Hunter City and made adjustments for those amenities that differed from the subject. In reviewing the comparables, sale #1 (Doc# 1089034) involved the settlement of an estate with a personal representative's deed being issued. Sale #3 (Doc# 1076364) involved a contract for deed between family members. Sales involving estates and sales between family do not meet the market value definition, and if used in an appraisal, are normally adjusted for these non-typical conditions. Neither comparable was adjusted. Appraising and assessing in small communities can become subjective because of the lack of sales data. The applicant is asking for an 18% reduction in assessment. I discussed the circumstances of sale of the property with the seller. It would appear that the buyer may have purchased the property somewhat below market. The property tax is based on market value, and not necessarily based on a single sales price. One may infer that the city conceded somewhat on