SIOUX FALLS, SD (KELO) — Home valuations began with a major sticker shock for many South Dakota homeowners earlier this month.
Minnehaha County’s compensation director says a typical year for homeowners, with the exception of a 3 to 4 percent increase in value, could mean a good year an 8 to 10 percent increase in value, but annual appraisals blow those common statistics out of the water.
“With the market growing at 18%, the numbers are simple, I’ve never seen them before,” said Chris Lilla, Minnehaha County’s director of equalization.
The average home value rose 18.3 percent in Minnehaha County, but that all depends on where you live. Some neighborhoods changed by only about 6 to 9 percent, while others saw increases of almost 30 percent.
“It was 28 percent, if you look at the ratings, it looks like the city is 18 percent, I’ve actually seen that in the neighborhood,” said Doug Corp, a Minnehaha County homeowner.
Minnehaha County homeowner Doug Corp is one of many people addressing this year’s appraised value.
“You expect your property taxes to go up quite a bit next year. That’s the main thing,” said Corp.
Director of Compensation Chris Lilla says homeowners who have had an appreciation in value of over 20 percent may see an increase in taxes, but the difference on their property tax bill won’t be 20 percent.
“It’s not a one-to-one correlation,” Lilla said. “They divide the budget into the value that determines the levies.”
And as more real estate adds to the city’s overall value, it helps spread the tax burden.
“We’ve got over a billion dollars of growth, lots of hands making slight growth, we’ve got a billion more hands to fill the budget,” Lilla said.
Therefore, he does not expect that this large increase in value will have a large impact on your taxes.
“If you’re up 18.3 percent, next year your taxes should be the same or lower,” Lilla said.
“I don’t think they have the details of our square footage,” Corp said.
But homeowners like Corp who think their home’s increased valuation is higher than reality have until March 17 to file a written appeal. But before you make that call, Lilla says you should take a look at today’s real estate trends.
“People really need to look at their worth and not turn a blind eye to what they consider to be their property. Call an agent, look at the listings in their neighborhood,” Lilla said. “If you truly believe that your property would not perform in today’s market, not last year, but in today’s market, then you should give us a call.”
The property valuation increases correspond to a 20 percent increase in property sales prices over the last year. Lilla says if you bought your home before April 2021, your estimated value may be more than what you paid for simply because the market has risen so much more in just 6 months.
“If you bought your house in December, you could have sold your house in May and made $50,000 without even fucking doing it. That’s just our demand at the moment,” Lilla said.