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William S. Marlow
Richard A. Broders
Dave Garing
William S. Harlow
MINUTES
April 27, 2009
1820 Jefferson Street
P.O. Box 1220
Port Townsend, WA 98368
Richard A. Broders
Dave Garing
Chairman
Vice - Chairman
Member
Chairman William S. Marlow called the meeting to order at 9:30 a.m. in the presence of Vice - Chairman
Richard A. Broders and Member Dave Garing.
HEARING
Michael Wells & Ester Wells BOE: 08- 175 -LO PN: 966100 004
P.O. Box 2113
Port Townsend, WA 98368
Michael Wells and Ester Wells were not present. Appraiser Maryn Gossell represented the Assessor's
office and was sworn in by Chairman Marlow. Under appeal is the value of bare land located in Kala
Point at 5 Kala Lagoon Court, Port Townsend.
Currently, the property is assessed at $270,000 (land only). The appellant estimates the value is $180,000.
Chairman Marlow noted that the appellant submitted to the Clerk of the Board, additional information
relating to this appeal. Since the additional information was not submitted to the Board seven (7) business
days prior to the hearing as is required, he asked the Assessor's representative Maryn Gossell if she
objected to the submittal of the additional information at this time? Ms. Gossell replied that she objects to
the submittal of the additional information as she has not had the opportunity to review it prior to the
hearing.
The additional information will not be entered into the record and will not be considered by the Board.
The appellants' reason for appealing the assessed value is written on their petition form as follows:
"Assessor's value does not reflect the fair market value based on actual sales of similar lots in the same
area which have sold in the past 12 months; please refer to the enclosure for the specific sales. Please see
`Exhibit A'. Please refer to the enclosure for specific sales data for all comparable lots sold from
02/29/08 thru 02/23/09. Please see attached `Exhibit A' dated 02/27/09 with enclosures."
Phone (360)385 -9100 Fax (360)385 -9382 jeffbocc@co.jefferson.wa.us
Board of Equalization Minutes - April 27, 2009 Page: 2
`Exhibit A' is a letter dated February 27, 2009 to the Board stating the following: "I wish to express my
sincere appreciation for hearing our petition request. Please refer to the market sales comparable
information provided below for lots sharing similar characteristics to our own lot; more specifically, close
proximity, size and view. Our lot is Lot 5, Kala Lagoon Court in Kala Point, APN 966 - 100 -004. Our lot
size is 13,524 sq. ft., is significantly sloped and has a filtered view of the preserve area and portions of
Port Townsend Bay. We purchased our lot in November 2004 for $175,000, with the intentions of
building our retirement home there. I am a 53 year old permanently disabled person and my wife is 52.
Following are the comparable lot sales which were used in determining and supporting the $180,000 `fair
market' value. Fair market value was defined as a value predicated on an arms length transaction between
a willing buyer and a willing seller, given a realistic selling period. Comparables used were in the closest
proximity to subject. Sales in Port Ludlow and upper Port Townsend were not within close proximity to
subject, therefore, were not considered to be accurate comparables based on discussions with local
Realtors and appraisers.
Comparable Lot Sales Data
Comparable 41 APN Sales Price Date Sold
Lot 2 Terrace Drive, Kala Point 965 900 020 $160,000 10/17/08
Port Townsend, WA
Description /Characteristics: A 13,068 sq. ft. lot in the same Kala Point subdivision as subject
roe . This lot is in close proximity to subject lot, nearly identical in size, and offers very nice
easterly filtered views of Port Townsend Bay.
Comparable #2 APN Sales Price Date Sold
63 Port Townsend Bay Drive 997 900 004 $175,000 04/24/08
Port Hadlock, WA
Description/Characteristics: A 7,841 sq. ft. `waterfront high bank' lot in Port Hadlock, in near
proximity to subject lot. Lot is smaller in size than subject lot, but, offers exceptional northeasterly
views of Port Hadlock harbor, Port Townsend Bay, Indian Island and Mount Baker.
Sales price was 88.38% of the original $198,000 listing price with 237 days on the market.
Comparable 93 APN Sales Price Date Sold
1275 Irondale Road 952 800 208 $180,000 02/29/08
Port Hadlock, WA
Description /Characteristics: A 24,339 sq. ft. `waterfront high bank' lot in Port Hadlock, in new
proximity to subject lot. This lot is significantly larger in size to subject and offers exceptional
northeasterly views of Port Hadlock harbor, Port Townsend Bay, Indian Island and Mount Baker.
Board of Equalization Minutes - April 27, 2009 Page: 3
Important. Sales price was 67.92% of the original $265,000 listing price with 849 days on the
market.
Comparable #4 APN List Price Date Sold
Lot 41 Windship Drive, Kala Point 964 700 041 $178,000 Active
Port Townsend, WA
Description/Characteristics: While not yet sold, this lot is in the same Kala Point subdivision as
subject lot. Lot is 20,038 sq. ft. and offers filtered views of Port Townsend Bay and is a direct
comparable to the subject lot.
Based on the established MLS average sales price to original listing price of 86.17% for those sales
occurring over the past 12 months, the anticipated actual sales price would be $153,400.
Active Listing Comparable #5 APN List Price Date Sold
1303 Prospect Avenue 989 600 016 $160,000 Active
Port Townsend, WA
Description /Characteristics: A level 10,000 sq. ft. lot with filtered views of Port Townsend Bay, City
lights and Indian Island, comparable to subject lot.
Sale #6 APN List Price Date Sold
* *Not considered to be an accurate comparable, being far'superior to subject lot
Seaview Drive 993 800 008 $320,000 ** 10/27/08*
Port Townsend, WA
Description /Characteristics: While shown in this exhibit, this sale is not considered to be an accurate
comparable to the subject lot. Lot is a 12,844 sq. ft. `waterfront medium bank' flat topography lot far
superior to subject lot, based on location being very close to downtown Port Townsend and offering
sweeping panoramic views of the Straits of Juan de Fuca shipping lanes, Whidbey Island, San Juan
Islands, Mount Baker and the Cascade Mountains.
This lot sale supports lot values in Port Townsend. This lot sale does not support sales in the Kala
Point area, thus, is not an accurate comp to Kala Point lot sales.
* Sold after reassessment date.
Board of Equalization Minutes - April 27, 2009 Page: 4
Active Listing Comparable 97 APN
List Price Date Sold
* *Not considered to be an accurate comparable, being superior to subject lot
274 Island View Avenue 989 600 008 $259,900 Active
Port Townsend, WA
Description /Characteristics: Lot is gently sloping and larger 19,010 sq. ft., direct `waterfront high
bank' lot with sweeping easterly panoramic views of Port Townsend Bay and Indian Island.
This lot is superior to subject lot in size, topography and view.
Important: Based on the actual sales price to original listing price of 67.92% after 849 days on the
market for comparable #3, similarly originally listed at $265,000, the anticipated sales price would
be $176,524.
There are no comparable lot sales in this immediate area to support the $259,900 listed price.
Summary Synopsis & Analysis:
Comparable #'s 1 thru 5 are considered to be most accurate and similar to the subject lot and are in the
closest proximity to the subject lot.
The average value of comps 1 thru 5 is $170,600.
While shown for illustrative purposes only, #'s 6 & 7 are superior to subject lot due to topography, view
and in the case of #6, location and proximity to downtown Port Townsend, and therefore, are not
considered to be accurate comparables for the subject lot.
There are no sales to support the $250,900 listed asking price of comp #7.
Comp #3 was listed similarly high at $265,000, yet it sold for only $180,000 (67.92% of price listed) after
being on the market for 849 days. Using this ratio, it would be reasonable to say that comp #7 is listed at
an unrealistically high asking price. Using the 67.92% sold to listed price ratio, a more realistic
expectation of the actual selling price would be $176,524.
Comp #6 is not in a comparable area to the subject lot considering its proximity to downtown Port
Townsend. It is a `far superior lot' considering its location, topography, desirability and outstanding
panoramic views. It is not an accurate comp to the subject lot.
The average value of only the lots "sold" during the period of February 29, 2008 thru October 17,
2008, (comp #'s 1, 2 & 3) and considered to be the best comparables for the subject lot is 17$ 1,667.
Board of Equalization Minutes - April 27, 2009 Page: 5
The average price of comps 1 thru 5 is $170,600 with the combined average value being $171,587,
all of which provide objective support for the $180,000 estimate of value for APN 966 100 004.
Following is a summary overview of the comps used to support an assessed value of $180,000 for the
subject lot APN 966 100 004: *
Comp # Selling Price Status
#1 $160,000 Sold
#2 $175,000 Sold
93 $180,000 Sold
$171,667 Average Price "SOLD"
44 $178,000 Active
#5 $160,000 Active
$170,600 Average Price
46 Not an accurate comp to subject.
#7 $176,524 Active adj.
$171,587 Overall Average Price
* Please refer to the `Map of Comparables' included herewith.
Date Sold
10/17/08
04/24/08
02/29/08
We hereby respectfully request the Jefferson County Board of Equalization accept this comparable
market data, including all enclosures provided herein and approve our petition to revise the
Assessor's appraised value of our lot APN 966 100 004 to $180,000."
Also included with the petition form and attached letter `Exhibit A' were the following documents: CMA
Report as of 02/23/09; listing summaries for comps 1 thru 7; Jefferson County Assessor's parcel
information sheet for comps 1 thru 7; and a map of comparables.
Ms. Gossell presented a sales chart outlining all the waterfront properties in Kala Point with color codes
by area. At the bottom of the map she listed the 2008 and 2004 assessed land values along with the
percentage of increase over those four years for each area. The appellant's property is located near the
lagoon at Kala Point. Based on sales, the land values in this area went from $165,000 in 2004 to
$250,000 in 2008 which is a 51.5% increase over four years.
The second map shows only the lagoon property which was originally platted with 6 lots. Sometime later
lot 2 was divided equally between lots 1 and 3, and lot 5 was divided equally between lots 4 and 6, so that
now there are a total of four lots. The map shows the outlines of the buildings that were originally
proposed for all six lots, however, those buildings do not actually exist. The four lots have a base value of
Board of Equalization Minutes - April 27, 2009 Page: 6
$250,000 with a 20% increase in value for the increase in lot size due to the added portions of lots which
were divided. Lot 4 is owned by the appellants and is receiving a 10% reduction in value due to poor site
quality and topography. Lot 6 is receiving a 25% reduction in value for poor location, view quality and
topography. While lots I and 3 have been built on, lots 4 and 6 are currently vacant.
She presented one comparable property sale of vacant land which sold twice within the four year
revaluation cycle. Parcel 9965 900 020 known as lot 20 in Kala Terrace was assessed in 2004 for $55,800
and sold in September 2006 for $144,500 indicating an increase in value of 159 %. As of January 1, 2008
the property was reassessed at $137,500 which is 95% of its sale price in 2006. It resold in October 2008
for $160,000. The current assessed value is 86% of its market sale price. This lot is in a different location
from the appellant's property. It is higher in elevation and smaller in size. The base rate for this lot is
$110,000 with a 25 % increase in value for view and location.
Also included in her information is a Hadlock Realty property detail report for a vacant parcel (lot 40)
located off of Windship Drive which shows a listing price of $178,000. The appellants also presented this
listing as part of their evidence. This property is not comparable to the appellants' property which is
superior due to its lower elevation and the fact that it overlooks the water.
As further evidence she presented a house sale in Kala Point located at 83 Cedar View Drive. In 2004 it
was assessed at $363,060. As of January 1, 2008 it was reassessed for $546,625 representing a 51%
increase in value over four years. In September 2008 the property sold for $725,000. The current
assessed value is 75% of the sale price.
She presented a listing of every single sale that occurred in 2008 after the rolls were closed on July 11,
2008 highlighting the sales in Kala Point. The assessed value of every single property on that list is below
their sale price. Based on these sales, property in Kala Point is not overassessed.
In reviewing the appellant's evidence she commented that his comparable properties #2, #3 and #5 are not
located in Kala Point. His comparable property #4 is the property listed for sale on Windship Drive, and
his comparable properties #6 and #7 he states are not considered comparable.
Hearing no further testimony, Chairman Marlow closed the hearing. The Board will make a
determination at a later date.
DETERMINATION
Michael Wells & Ester Wells BOE: 08- 175 -LO PN: 966 100 004
P.O. Box 2113
Port Townsend, WA 98368
The Board reviewed the information presented by both parties. The appellant provided seven
"Comparable" properties, five of which were sales and two of which were listings. The appellant
contends their comparable property sales one through five are the most valid, with an average value of
$170,600. Two of these five are in the plat of Kala Point.
Board of Equalization Minutes - April 27, 2009 Page: 7
The subject property was appraised for and purchased for $175,000 in November of 2004. The appellant
contends there has been a declining Real Estate market since about 2005, thus fair market value of the
subject property should be $180,000.
The Assessor's representative provided data showing sale prices and assessed values for all parcels
located in the 2008 revaluation area which sold after July 11, 2008. This included 12 parcels in Kala
Point. No parcels inside or outside Kala Point sold for less than the assessed value. The ratio for
properties sold in Kala Point ranged from 75% to 99.20 %, with the average at approximately 95 %.
The Assessor's representative contested the appellants' claim that their comparable properties were truly
comparable to the subject property. Based on testimony, including maps and specific information on
location, and the fact that the appellants' comparable property no. 1 had an assessed value of only
$137,500 and sold for $160,000, the Board concurs that the subject property is generally superior, and
thus more valuable, than the supplied comparable properties. It is the finding of the Board that the current
assessment is fair and equitable.
Vice - Chairman Broders moved to sustain the Assessor's valuation of $270,000 (land only). Member
Gazing seconded the motion which carried by a unanimous vote. (See Hearing Above)
BOARD OF EQUALIZATION 2008 SEASON CLOSURE
With no further business before the Board of Equalization for the 2008 season Member Garing moved to
adjourn the meeting Sine Die at 9:57 a.m. Vice - Chairman Broders seconded the motion which carried by
a unanimous vote.
ATTEST:
Leslie R. Locke, Deputy Clerk of the Board
JEFFERSON COUNTY
BOARD OF EQUALIZATION
William S. Marlow, Chairman
Richard A. Br ers,
d Vice - Chairman
Dave Gazing, em er