Homeowners surprised at assessments - IRR-Residential quoted as valuation experts

TRAVERSE CITY — The housing market is flat or in decline throughout Michigan, so Dorothy Roush wants to know how Garfield Township's assessor determined that her home's value jumped almost $12,000.
Then there's Ray Reamer of East Bay Township, who saw his assessment jump by $41,300.
Homeowners like Roush and Reamer began receiving assessment notices last week. Many were surprised to see both a hefty tax increase based on the rate of inflation and double-digit increases in their property assessments.
Home values in the Grand Traverse region were relatively stable in 2006, with variations anywhere from a five-percent reduction to a three-percent increase, though most were around zero, said Robert Reamer, president of IRR-Residential Veri-Tech Appraisal.
Figures from the Traverse Area Association of Realtors show average home prices dropped about 1.5 percent in 2006, while the state as a whole dropped about 2.3 percent.
But area property tax assessors can't use most of the sales information from 2006, according to state law.
Assessors use sales studies to determine a percentage increase or decrease in property values by neighborhood. State law sets the study period at two years, running from April 1, 2004, through March 31, 2006, for current figures.
Traverse City Assessor Deb Chavez said assessed values almost always lag behind sale prices. When home values shoot up the gap widens, and when they drop, assessments catch up.