2015-04-20 CC Agenda Packet LBAEl3r� I/I
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Minnesota State Law requires assessors to value property based on historical data.
Taxes payable are always based on the prior year's value, which was determined
using sales data from a previous time period (see chart below).
Therefore, in an escalating market, assessed values are typically lower than the
current market. Likewise, if values are declining it's possible that assessed values
will be higher than the current market. This is due to the time frame we are
required to work with and the effects of a rapidly changing market.
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SOID
Gather & Verify
Sales Data
v�
Valuation
Year
Pay taxes
CURRENT VALUE/
PREVIOUS MARKET
Oct. 1, 2013
thru
Sept. 30, 2014 {
FUTURE VALUE/
CURRENT MARKET
Oct. 1,
th
Sept. 31
MINNESOTA- REVENUE
My House is Worth What?
Property Tax Fact Sheet 14
Why doesn't the assessor's value reflect the
sale price of my property?
1. There is a lag between the time of the assessment and
when the sale takes place.
An appraisal is an estimate of property value based on
historical data at a set point in time — January 2 of each year
— and the market can change dramatically by the time the
property is sold.
For example, consider a property valued at $180,000 as of
January 2, 2007. This assessment is based on home sales
that occurred between October 2005 and September 2006.
However, the property may sell for $230,000 in August
2007. Does this mean the estimated value is incorrect? Not
necessarily. It could signal an upturn in the housing market
between September 2006 and August 2007, raising the sale
price of the home.
Just as buyers in rapidly accelerating markets may pay
significantly more than the assessor's last valuation, they
may also pay less in declining markets. A property valued
by the assessor at $200,000 for the 2007 assessment may
sell for $175,000 in August 2007.
This lag time often results in a dramatic difference between
actual sale prices and the estimated market values for the
current year.
2. Properties can change over time.
While values can fluctuate on an annual basis due to sales
of similar properties, Minnesota law requires that properties
only be inspected once every five years, unless new
construction or demolition takes place. Between those
inspections, properties may be improved without the owner
obtaining a building permit — or they may deteriorate if
neglected. These changes can be difficult for assessors,
who may only see the exterior of the home, to consider in
their annual evaluations.
3. There is no "correct" price for real estate — but
rather a range of prices.
The ultimate sale price of a particular property depends on
its unique characteristics as well as the complex
Property Tax Division — Mail Station 3340 — St. Paul, MN 55146 -3340
www. taxes.state.mn. us
motivations and preferences of the seller and potential
buyers. If that weren't the case, Realtors and sellers would
never have to reduce listing prices, offers from multiple
buyers would all be identical, and professional appraisals
would all arrive at the same value. In reality, list prices
often misjudge the market, offers are negotiable and can
vary widely, and appraised values may be disputed.
4. No two parcels of property are identical.
Estimating the precise value of a property that is based on
dozens, if not hundreds, of characteristics is very difficult.
Even nearly identical properties (e.g. adjacent townhomes
or condominiums) often sell for different amounts.
5. Real estate markets are highly localized and always
changing.
Sale prices of different types of properties can vary widely.
Currently, farmland and recreational properties are rising in
value and sales are strong, but residential sales are stable or
slightly declining in several areas. Some neighborhoods are
declining at a much faster rate than other areas, which may
be stable or slightly increasing in value.
6. Fewer sales mean more challenges for assessors.
In many markets and for many types of property, there are
few sales of comparable properties. This can make
accurate market assessments more difficult, but the assessor
must still use his/her professional judgment and knowledge
to estimate market values on an annual basis. This may
mean looking at sales that take place outside the study time
frame or in a neighboring city or township.
7. Not all sales are representative of the market.
Some sales, such as foreclosures, sales between relatives, or
sales where the seller or buyer are acting under undue
duress are not considered open - market, arm's -length
transactions and are not used in sales ratio studies, nor are
they used as comparables in estimating the market values of
similar properties.
If you have additional questions or concerns, please contact
your county assessor.
This fact sheet is intended to help you become more familiar with Minnesota
tax laws and your rights and responsibilities under the laws. Nothing in this
fact sheet supersedes, alters, or otherwise changes any provisions of the tax
law, administrative rules, court decisions, or revenue notices. Alternative formats
available upon request.
Revised 4/08 Minnesota Revenue 1
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7855
Gregory A. Kramber
Wright County Assessor
Wright County Government Center
10 2nd Street NW, Room 240
Buffalo, MN 55313 -1183
Phone: (763) 682 -7367 / (763) 682 -7368
1 (800) 362 -3667
FAX.- (763) 684 -4553
City of Albertville 2015 Assessment
Residential Values
Values for the 2015 assessment are determined using a Department of Revenue sales ratio
study which occurred between October 1, 2013 and September 30, 2014.
❖ QUALIFIED SALES
• Quantity: 91
• Median Sales Ratio: 91.50%
• Median Sale Price: $204,333
Time Adjusted Ratio: 89.25%
❖ UNQUALIFIED — FORECLOSURE/BANK SALES
• Quantity: 67 ( including new construction, relative, etc)
• Median Sales Ratio: 97.72 %
• Median Sale Price: $180,740
After review and analysis, market based increases were made on most properties throughout
Albertville. The final Time Adjusted Sales Ratio came in at 92.40 %. The State of
Minnesota requires this ratio (estimated market value /sale price) to be between 90 -105 %.
Current Sales Used To Determine Next Year's Values
There are currently 26 qualified sales to be used for 2016 valuations.
Those qualified sales have a ratio of 94.61 %.
Market Value Appeals Process
Visit Your Assessor's Office
v' Review property charaner slits
V Compare can parable properties
Request an adjustment if supported
Appeal to the City or Township "Board of Review"
1 Typicagy meets rc. Apr l or May
May appeal in perso -) , letter, or application
V Call dry or townsh p fcr ai appointment
Appeal to the County "Board of Equalization"
V Mees it rune
V May appeal in person or a ter
#� Call county for an appo ntrent
IAppeal to the Minnesota Tax Court I
V Appeal oy .ypnl 30 Y the year following tie assessment
Small Claims Division
Attorney is not necessary
Decisions are final
To tie in the Small Claims Division you must meet ore of these cordrtions:
• the issue is a denial of a current year appticatior for the homestead ciassifxation for the
taxpayers property;
' Only one parcei is included in the petition, the enti•e parcel is class fied as homestead la or
lb pursuant to Minn Stat 273.13; and the parcel contains no more than one d%vel ing unit;
• the entire property is classified as a, icuhural homestead class 2a or ib under sect*n
273.13; or
' The assessor's estimated market va ue of the property ;wu ded in the petition is less than
5300,OD0
Regular Division
�Attomeyis ecommerCee
Decisions are appea able to the Supreme Coult
Must be used fo• propetties assessed over 530C,000
Albertville Five Year Residential Sales History
Assessment Year
2011
2012
2013
2014
2015
Median Sale Price
$183,300
$136,300
$136,300
177,025
204,333
Qualified Sales
45
30
42
68
91
Bank/Foreclosures
67
(59.82 %)
56
(65.12 %)
65
60.75%
51
(42.86 %)
35
27.77)
*bank /foreclosure sales compared to qualified sales, not to overall sales that took place.
so Year History of New Home Permits:
*Westwind Apartment Complexes
Albertville Residential Value Change
2014
assessment
2005
2oo6
2007
2oo8
2009
2010
2011
2012
2013
2014
Homes
112
68
51
5
0
3
5
11
23
22
Townhomes
22
22
0
37*
0
0
0
0
0
0
Total
134
90
51
42
0
3
5
11
23
22
*Westwind Apartment Complexes
Albertville Residential Value Change
2014
assessment
2015
assessment
2014New
Construction
Value Change
Change
$418,927,600
$438,729,500
$5,032,300
$14,769,600
3.53%
Albertville Commercial Value Change
2014
assessment
2015
assessment
New
Construction
Value Change
Change
$142,320,100
$141,177,200
$462,300
- $1,605,200
-1.13%
Albertville Apartment Value Change
2014
2015
2014 New
Value Change
Change
assessment
assessment
Construction
$16,935,600
$21,734,700
$3,402,500
$1,396,600
8.25%
Guardian Angels
All values within the "Annual Value Comparisons" table are subject to change based on
the finalization of abstracts, corrections, abatements, etc.
Gregory A. Kramber
Wright County Assessor
Wright County Government Center
10 2nd Street NW, Room 240
Buffalo, MN 55313 -1183
Phone: (763) 682 -73671 (763) 682 -7368
1 (800) 362 -3667
FAX.- (763) 684 -4553
www.co.wright.mn.us
2015 Wright County Assessment
Residential values increased approximately 4.93% throughout Wright County. The property
increases are a result of 1,319 "qualified" sales used in the sales ratio study (Assessed value
divided by sales price equals sales ratio). The median ratio prior to the state time adjustment for
Wright County was 89.23 %.
Agricultural market values increased approximately 0.60%
Apartment market values increased approximately 5.82%
Commercial & Industrial values decreased approximately 0.13%
Taxable New Construction
Total Sales
Qualified Sales
2010
1,963
659 —
103.89% Ratio
2011
1,912
707 —
97.29% Ratio
2012
1,785
621 -
102.22% Ratio
2013
1,972
756
— 94.02% Ratio
2014
2,416
1,239
— 89.68% Ratio
2015
2,511
1,319
— 89.23% Ratio
Agricultural market values increased approximately 0.60%
Apartment market values increased approximately 5.82%
Commercial & Industrial values decreased approximately 0.13%
Taxable New Construction
Total County Estimated Market Values Taxable Real Property
2010
Residential
Total
2010
$48,371,800
$64,958,400
2011
$32,219,400
$56,425,900
2012
$32,997,300
$59,635,900
2013
$60,584,500
$72,561,200
2014
$108,239,400
$122,129,300
2015
$124,434,600
$171,710,200
Total County Estimated Market Values Taxable Real Property
2010
$11,757,067,800
2011
$11,250,580,300
2012
$10,610,547,800
2013
$10,824,953,100
2014
$11,754,740,700
2015
$12,346,894,000
Albertville Breakdown by Class of
Property 2014
$11,775,349, 2 521,734,700, 4` 2%,
■ Residential / Seasonal
$141,177,200, ■ Commercal /Industrial
23%
$438,729,500, Agricultural
71% ■ Apartments
What is Market Value?
Market value is defined by the following information from the Minnesota Department of
Revenue.
Market value is the price that would prevail under competitive, open- market conditions
at the time of the assessment. An "open- market" sale is one in which the buyer and
seller are acting prudently, and the price is not affected by undue stimulus. The price
obtained at a forced sale shall not be considered.
Foreclosure vs. Traditional Sales
Albertville sales have shown roughly an 12.5% difference in average sale price between
a foreclosure /short sale compared with a traditional sale
New Time Adiusted Ratio
Three years ago a change was made in how time adjustments are made. The terms "backward"
and "forward" come into play. These terms reference the way sales ratios are calculated. In the
past, the ratio was calculated looking back during the sales year. Now, the desired method is to
do a time adjustment looking "forward ". In simple terms, this means that a home that sold in May
of 2014 for $140,000, would be worth $150,000 by December of 2014 due to the increasing
market. There are a couple of reasons for making this change. It more closely resembles what
the "current" market is as of January 2nd of each year (the assessment date), and, it is the
preferred method for Minnesota Tax Court.
11644 57th St 7/14 $105,000
6686 Lander Ave 7/14 $153,500
101022004060.JPG
5438 54th Cir 9/14 $153,503
11811 55th St 10/13 $138,000
101022004080.JPG
5445 Large Ave 6/14 $155,000
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101025002090.JPG
11791 57th St 4/14 $164,000
101029003040.JPG
6158 Kalland Dr 8/14 $173,055
101040001020.JPG
10616 62nd St 6/14 $153,163
11352 54th St 4/14 $169,168
i
101036003090.JPG
10707 61st St 4/14 $162,475
6141 Kahler Dr 9/14 $169,840
101047001210.JPG
11025 57th St 4/14 $114,000
10945 57th St 2/14 $115,100
5585 Kalenda Dr 6/14 $202,148
10917 57th St 6/14 $126,900
10594KarstonAve 1/14 191,090
5588 Kalenda Dr 10/13 $181,000
ON,
101040006050.JPG
6111 Kahler Dr 5/14 $170,235
F 1 -77
AW
101040007010.JPG
6213 Kahler Dr 9/14 $181,900
IF101043001020.JPG
5479 Main Ave 3/14 $137,740
5693 Kalland Ave 8/14 $181,390
5715 Kalland Ave 10/13 $167,9QU
s
10115 63rd St 4/14 $175,000
10579 Karston Ave 5/14 $238,200
5404 Kalenda Dr 11/13 $145,403
Y-
s
101053003050.JPG
10278 Karson Ave 6/14 $266,265
5499 Kalenda Dr 7/14 $231,950
10132 Karson Ave 5/14 $152,000
10137 Karson Cv 2/14 $143,000
5594 Kalland Ave 4/14 $121,000
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5353 Kahler 6/14 $234,740
10144 Karston Ave 7/14 $180,480
10521 Karston Ave 10/13 $329,550
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5624 Lambert Ave 7/14 $184,203
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101066005040.JPG
5525 Lachman Ave 6/14 $142,784
✓t 'A �?' a "Tt1aS.i68 i_ :*Vl�.' -A'4yM X.44SS*{ `if
I 101069002050.JPG
10464 64th way 5/14 $150350
10204 53rd St 10/13 $175,000
10358 64th St 3/14 $132,890
10463 64th Ln 5/14 $135,400
5346 Kahl Ave 5/14 $205,640
5328 Kahl Ave 9/14 $231,650
5246 Kahl Ave 6/14 $206,340
10293 52nd St 11/13 $237,400
TS
101071003080.JPG
10227 52nd St 8/14 $200,000
I
5
5107 Kali Ave 6/14 $224,686
101079003100.JPG
5390 Kalland Ave 2114 $155,500
t.
101081002130.JPG
5040 Kahl Ave 5/14 $215,000
101081003010.JPG �101081003060.JPG
10175 Kali Ave 7/14 $223.100 10275 Kali Ave 5/14 $199,155
-V
101081003100.JPG
4967 Kaiser Ave 11/13 $221,160
y...._. <tF .v: �
k 101084001010.JPG
10445 Jason Ln 6/14 $154,900
10634 51st St 8/14 $175,323
6205 Karston Dr 8/14 $330,500
101073002010.JPG
6250 Karston Dr 10/13 $253,750
6218 Karston Dr 7/14 $229,900
I UI U/ /UUZudu.JPG
11453 53rd St 8/14 $189,900
101084001020.JPG
10451 Jason Ln 1/14 $144,900
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101087001480. J PG
10467 64th Ln 11/13 $130,000
101087001220.JPG
10572 64th Ln 8/14 $135,000
9
10457 64th Ln 6/14 $150,000
101087001520. J PG
' 10445 64th Ln 5/14 $145,403
10109000-
10229 Karston Ct 9/14 $324,952
10236 Karston Ct 9/14 $355,000
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101093006030.JPG
6744 Lakeview Cir 11/13 $199,900
101093010030.JPG
11668 East Laketowne Dr 5/14 $420,000
101093003010.JPG
6777 Lakeview Cir 12/13 $288,120
6719 Lakeview Cir 9/14 $355,000
4951 Kalenda Ave 4/14 $335,500
6191 Kahl Ave 5/14 $191,963
-
4 _ 101098003030.JPG
11371 West Laketowne Dr 12/13 $288,000
101096006090.JPG
4923 Kassel Ave 5/14 $302,975
101098003020.JPG
11357 west Laketowne Dr 5/14 $460,000
,,6o 1 West Laketowne Dr 8/14 $137,900
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101101002170.JPG
6698 West Laketowne Dr 6/14 $145,500
11254 68th St 7/14 $258,100
6456 64th St 9/14 $127,000
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101101002190.JPG
6639 Lamplight Dr 12/13 $143,000
101500011302.JPG
1159956thSt 6/14 $243,500
101500014307.JPG
5098 Main Ave 5/14 $147,000
682767thSt 5/14 $285,000
5076 Main Ave 2/14 $165,550
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®Wright County Assessor's Office
C /Iform '14
Commercial/industrial Sale
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101141001020
Holm, Trisha
Complex Name:
152 Club
Parcel #.
Property Use:
Bar & Grill
Sale Date:
City
Albertville
«�
Sale Price:
Address:
5794 Main Ave NE
Adjustments:
Year Built:
1910 w/201 0 add n.
Net Sale Price:
Type of Construction:
Class D
Terms:
Condition:
Average
67,987.5 down remainder at 6.6% interest monthly
Building Size (SgFt):
3,589
Ground Floor Area:
2,629
Gross Floor Area:
3,589
Net Rentable Area:
$96.41
#ofStories/Wa#Height-
multiple "
Mezzanine:
960
Heating /AC:
Sprinkler /E/e vator.
none
Site Utilities:
city services
Land Area:
57,320
Zoning:
B-4
USEC Code:
1310
Misc:
Mezzanine included in gross buiding area.
Verified: tpr7372
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Buyer,
Holm, Trisha
Seller.
Holm, Michael & Deborah
Parcel #.
101- 141 - 001020
Sale Date:
4/9/14
«�
Sale Price:
$346,000
Adjustments:
---i
Net Sale Price:
$346,000
Terms:
CD
67,987.5 down remainder at 6.6% interest monthly
Balloon in March of 2015
Sate Price (SgFt):
$96.41
Ground Floor Area:
$131.61
Gross Floor Area:
$96.41
Net Rentable Area:
Income Data:
Comments:
(02) Relative Sale
Phone:
Assessed Value:
Ratio (Y /N):
The data contained in this document is deemed accurate but not guaranteed. Ratio :
Wright County assumes no responsibility or liability for actual or consequential damage incurred as a result of using data contained in the document.
101500011215
Complex Name: Highland Bank Buyer- Dolly Jean Prop etal
Property Use: Bank Seller. Highland Bank
City: Albertville
Address: 5985 Large Ave NE Parcel #- 101 - 500 -011215
Year Built. 1994 Sale Date: 5/1/14
Type of Construction: Class D; Brick Veneer Sale Price: $250,000
Condition: Average Adjustments:
Building Size (SgFt): 4,701 Net Sale Price: $250,000
Ground F/oorArea: 2,301 Terms: WD
Gross Floor Area: 4,701
Net Rentable Area:
# of Stories/Wall Height. 1 story with basement Sale Price (SgFt): $53.18
Mezzanine: none Ground Floor Area: $108.65
Heating /AC: FA/AC Gross Floor Area: $53.18
Sprink /eNEle vator.- Net Rentable Area:
Site Utilities: city services Income Data:
Land Area: 43,200
Zoning: Commerical Comments:
USECCode: 1800 Vacant charter bank building; fsbo
misc., New use will be a floral shop
99 sfporch included in abo ve sf- 544 sf
canopy not indluded in above sf
Verified: tp r7372v Phone:
Assessed Value:
Ratio (YIN):
The data contained in this document is deemed accurate but not guaranteed. Ratio:
Wright County assumes no responsibility or liability for actual or consequential damage incurred as a result of using data contained in the document.
Might County Assessor's Office
C /lforrn '14
Commercia / / /ndustna/ Sale
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101500351405
Complex Name.,
Buyer-
4th Axis Properties LLC
Property Use:
Warehouse /Office
Seller-
Voght, Donna
City:
Albertville
Address:
6575 Labeaux Ave
Parcel #.
101- 500 - 351405
Year Built:
1984
Sale Date:
3/18/14
Type of Construction:
"D" Wood Pole
Sale Price:
$420,000
Condition:
Average
Adjustments:
Building Size (SgFt):
11,680
Net Sale Price:
$420,000
Ground Floor Area:
11,680
Terms:
WD
Gross Floor Area:
11,680
Net Rentable Area:
'
# of Stories/Wa# Height:
14'- 16'
Sale Price (SgFt):
$35.96
Mezzanine:
Ground Floor Area:
$35.96
Heating /AC.
Gross Floor Area:
$35.96
Sprinkler /Elevator.-
Net Rentable Area:
Site Utilities:
City services
Income Data:
Land Area:
108,908
Zoning:
1-1
Comments:
USEC Code.
1595
Misc:
Verified.. tp r7372 Phone:
Assessed Value:
Ratio (YIN):
The data contained in this document is deemed accurate but not guaranteed. Ratio:
Wright County assumes no responsibility or liability for actual or consequential damage incurred as a result of using data contained in the document.