Henderson County prepares for reappraisal as property values continue to climb
Henderson County is preparing for its 2023 reappraisal, meaning new and increased property values are on the horizon for local taxpayers.
County Tax Administrator Darlene Burgess presented plans to the Henderson County Board of Commissioners on Wednesday. The goal of the 2023 reappraisal is to appraise all real property at 100% of its fair market value as of Jan. 1, 2023. Real property includes land, buildings, structures and improvements.
While the state requires a reappraisal every eight years, Henderson County has conducted one every four years since 1995.
Henderson County conducts in-house appraisals, which is a staff consisting of nine appraisers, a manager, an analyst, and one clerical assistant.
Henderson County currently has 69,433 parcels. That number fluctuates as land is subdivided and recombined. Approximately 50,825 (68%) of the county’s parcels are considered improved, meaning a structure is located on the parcel.
Additionally, 1,604 parcels receive a deferment for forestry, agriculture, horticulture or wildlife conservation. County Tax Administrator Darlene Burgess explained that with deferment, the properties are valued at less than fair market value. These parcels are subject to review at any time.
The county has 2,192 parcels exempt or excluded from taxation for qualifying reasons such as charitable, religious or government-owned.
How are property values determined?
State law says real property is to be valued at its “true value in money.”
True value in money is the same as market value, which is the “price estimated in terms of money at which the property would change hands between a willing and financially-able buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used.”
Market value is determined by the most recent sales activity in the local real estate market. Only arms-length transactions are used to measure market value. Short sales, related party transactions, foreclosures, multi-parcel sales or other types of sales that are not arms-length transactions are not used to measure market value.
Properties under construction will be appraised at the percentage of completion as of Jan. 1, 2023.
Property values can change during a non-appraisal year due to physical changes made to the property, among other things. Examples include the addition of outbuildings, pools, or additions to the existing structure.
Henderson County assessors use a mass appraisal approach to value property. Similar properties are grouped together into market areas or neighborhoods for evaluation. Henderson County has 1,183 market areas.
Burgess said mass appraisals cost much less than the typical fee appraisals and are a quicker process.
The public should be aware that appraisers do not go inside the homes they visit, Burgess said. Most recent sales are given the most weight during the valuation process, and the local real estate market is continuously monitored.
'Thriving’ local real estate market
Henderson County’s real estate market is thriving, Burgess said. Local sales are strong, and building is growing both in the residential and commercial markets.
The median home price is an important market indicator and is derived from Henderson County sales reported by the MLS (multiple listing service). As of July 2022, Henderson County’s median home price for a single-family home is $395,000. The average number of days on the market for a home is 22, and there is a 1.4-month supply. The median price for all properties, including vacant parcels, is $350,000.
The median home price means that half of the homes sold below the median and half the homes sold above it. While the median home price is an indicator of the market value and is derived from homes that have sold, it cannot be solely used to estimate property values in the county.
It comes as no shock that the median home price is up significantly from previous years. In 2021, the median sales price for a single-family home was $325,000, with an average of 54 days on the market and a 2.8-months supply.
In 2020, the median sales price was $286,250, with 63 days on the market, and a 4.5-months supply. For 2019, the median was $271,128, with 56 days on the market and a 4.2-months supply.
Burgess also shared the median home prices in July 2022 for Henderson County’s municipalities:
Hendersonville - $340,000
Flat Rock - $379,900
Fletcher - $390,000
Laurel Park - $417,500
Mills River - $456,900
Saluda - $333,750
Building permits continue to rise as well. For fiscal year 2022 (July 1, 2021 through June 30, 2022), 2,108 residential permits were issued at an estimated construction cost of over $335.6 million. Additionally, 269 commercial permits have been issued at an estimated construction cost of over $159.2 million.
2023 tentative reappraisal schedule
Oct. 1, 2022: schedules of values presented to the board of commissioners by the tax assessor; public hearing scheduled and publication authorized by commissioners. Schedules of values made available for public inspection.
Nov. 7: public hearing on the schedules of values
Nov. 23: the schedules of values adopted by the board of commissioners
Dec. 1 - Jan. 31: Educational and informational sessions conducted by the assessor to community groups, civic organizations and taxpayers throughout the county
Jan. 1: effective date of 2023 reappraisal.
Feb. 1: notices of value change mailed to taxpayers
January – April 14: informal appeals heard by the assessor until the Board of Equalization and Review convenes
April 15: Board of Equalization and Review convenes
May 15: Board of Equalization and Review adjourns. After this date, no new appeals can be filed. Appeals timely filed will be heard by the board.
June 30: Latest date the fiscal year 2024 tax rate is established by the board of commissioners
August 2023: 2023 tax bills will be mailed to property owners.
For transparency, the county plans to upload the tax office’s presentation to the county website, www.hendersoncountync.gov.
This article originally appeared on Hendersonville Times-News: Henderson County prepares for property reappraisal
