2007 General Assessment Information

The 2007 General Assessment notices were mailed to all Wayne Township property owners on November 5, 2007, and the assessment list was published in the Examiner newspapers on November 7, 2007.

Because there is a widespread perception that market values are “plummeting,” I will try to clearly explain the General Assessment process, and answer common questions that many property owners may have.

Q: What is the “General Assessment?” A: The General Assessment occurs every four years, as required by Illinois statute. It used to be called the Quadrennial Reassessment. Every neighborhood is carefully reviewed, and all properties are reassessed to improve assessment uniformity. During the past three years, since the last General Assessment, properties have received Township equalization factors applied by the County Supervisor of Assessments to bring the median level of assessments to 33 1/3% (one-third) of market value.

Q: What does the Equalized Assessment mean? A: My office is required by state law to assess all properties at a median level of 33 1/3% of market value. To determine our estimate of the market value of your property as of January 1, 2007, divide the Supervisor of Assessments Equalized Assessed Value by .3333, or multiply it by three.

Example:

Supervisor of Assessments Equalized Assessed Value
125,000 divided by .3333 = $375,037 estimated market value

or

Supervisor of Assessments Equalized Assessed Value
125,000 times 3 = $375,000 estimated market value


Q: My assessment went up. A lot! How can this have happened when the real estate market is so slow? A: There are several reasons. First, some of the gloomy news reports have been misleading. The Chicago-area market has also fared better than other areas of the country. It is true that sales activity has slowed considerably recently, and homes tend to stay on the market longer. People in unfortunate financial circumstances, such as foreclosures and divorces, sometimes are unable to sell their homes quickly, and must sometimes sell them below market value. (Often, these homes are also in below-average physical condition).

But overall, homes that have sold and resold during the past three years have continued to experience price increases. A comparison of homes that sold and resold in 2006 and 2007, not including homes that had major remodeling and were “flipped,” indicates an average annualized increase of almost nine percent! A comparison of sales between 2005 and 2006 indicated an average increase of over six percent. Yes, there have been cases when owners have taken their homes off the market because they did not receive offers the owners felt were acceptable, but very often there remains a large gap between the owner’s asking price, and the market value indicated by the assessed value, which is usually much lower.

Second, because the 2007 Equalized Assessment is based on sales that occurred during the three previous years, 2004-2006, as required by state law, even if there was a sustained, township-wide drop in sale prices, those falling prices would not begin to affect assessed values until 2008. Also, because the three prior years of sales are used to determine the necessary assessment changes or equalization factor each year, and the market was extremely strong for at least five years, a true sales slump would need to last for three years or more to cause significant reductions in assessed values.

Third, as I stated previously, in a General Assessment year, every neighborhood is reviewed. Certain assessments may have been adjusted to improve assessment uniformity. We try very hard to make sure assessments are as fair and uniform as possible.

Q: How can I appeal my assessment? A. First, take a deep breath, count to 10, and call our office. We anticipate a high volume of calls, because almost 23,000 General Assessment notices are being mailed in Wayne Township.

An appeal can be filed based on one of two grounds. You may appeal your market value, if you do not believe that your Equalized Assessed Value, multiplied by three, is a fair estimate of the market value of your property as of January 1, 2007. You may also appeal based on assessment uniformity, if you believe your property is not assessed uniformly with similar properties in your area. A belief that the amount of increase is excessive or that the tax bill is too high are not valid grounds for appeal. The Board of Review will not listen to arguments regarding the increase or the tax bill. They can only address market value or uniformity.

My staff will try to help you find sales of properties that are similar to yours, or properties to verify uniformity. We’ll also make sure your property information is correct. If you still do not believe your assessment equals one-third of the property’s market value, or that your assessment is uniform, you may file an appeal with the Board of Review. Appeals must be filed by December 7, 2007.

If you receive a letter from a “consultant” offering to represent you in an assessment appeal, please call my office. It is rarely necessary for homeowners to require representation in assessment appeals.