Columbus homes selling for far more than auditor figured

Four out of five Franklin County, Ohio, homes that changed hands this year sold above the county auditor's estimated value, in some cases for two or three times as much.

The difference reflects, in part, the sharp climb in home values since the county reappraised property last year.

Although half of homes sold within 25% of the auditor's estimates, others are wildly different — in both price directions. A home in the King-Lincoln neighborhood, for example, sold last week for $349,000, more than eight times its tax value of $42,100. At the other extreme, an Old Beechwold home that sold in January for $300,000 had been valued at $578,300.

The vast majority of homes, however, sold above the auditor's values. Of the 4,378 homes that sold between Jan. 1 and April 27, 3,431, or 78.4%, sold for more than the county's estimate, with a median sales price of $38,000 above the auditor's value.

Another 909 homes sold for less than the county's value, while 38 homes sold for exactly the county's estimate.

Columbus, Ohio
Looking south at Columbus, Ohio in the distance

Real estate experts were not surprised that most homes sold for more than the auditor's values, given how much prices have climbed since the auditor's reappraisal last summer. Central Ohio sale prices in March (the most recent data available) were up 9.5% from a year ago.

"When 80% sell for more than auditor's values, that's the reality," said Thomas Francis Jr., senior vice president of the Columbus appraisal firm Real Property Analysts and past president of the Ohio Coalition of Appraisal Professionals.

"The auditors did the best they could do at the time of their valuation."

Low values cost public agencies property-tax revenue, but Auditor Clarence Mingo said homeowners should be pleased that their homes are selling for more than the county's estimates.

"The reality is that people want their property values low for tax purposes and high for sales purposes, and we are seeing that reality play out between homeowners and homebuyers on the open market," he said.

The data released by the auditor's office illustrates the dramatic change underway in some urban neighborhoods popular with house flippers.

Most of the homes that sold way above their values are found in three ZIP codes adjacent to Downtown: 43222 (Franklinton), 43205 (east of Interstate 71 and south of Broad Street, including Olde Towne East and Franklin Park) and 43203 (east of Interstate 71 and north of Broad Street, including the King-Lincoln neighborhood).

Two homes in the 1100 block of East Rich Street, for example, illustrate how dramatically home values are changing in Olde Towne East.

Both are four-bedroom, two-story homes built around 1900 that were bought last year, renovated and sold in March of this year. One sold for $329,900, 17 times the auditor's value of $18,700. The other sold for $333,000, more than 10 times the auditor's value of $31,300.

Sales prices will not automatically trigger a change in auditor's values, unless the values are challenged by a taxing body, said Dave O'Neil, a spokesman for Mingo. But the office will use sales prices when it next updates county values in 2020.

Tribune Content Agency
Appraisals Home prices Purchase Housing markets Ohio
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