A REVALUATION OF THE - Wisconsin Association of Assessing

A MASS APPRAISAL REPORT
OF AND PREPARED FOR THE
Town of Hutchins
Located in the County of Shawano
In the State of Wisconsin
PRESIDED OVER BY
Pat Meverden, Town Chair,
PREPARED BY
,
(Assessor Name)
,
(Business Name)
,
,
(Mailing Address)
EFFECTIVE VALUE DATE
JANUARY 1, 2011
1
TABLE OF CONTENTS
SECTION 1 – INTRODUCTION
Letter of Transmittal ................................................................................................................................ 3
Required and Significant Assessment Dates and Reports .................................................................... 4
Statement of Assumptions and Limiting Conditions ............................................................................... 5
Client, Intended User and Intended Use, Effective Date of Appraisals .................................................. 6
Type and Definition of Value .................................................................................................................. 6
Jurisdictional Exceptions ........................................................................................................................ 7
Identification of the Property Rights ....................................................................................................... 7
Highest and Best Use ............................................................................................................................. 7
Electronic Data Requirement.................................................................................................................. 7
SECTION 2 – SCOPE OF WORK (as identified in contract or work plan)
General Scope of Work and Jurisdiction Description ............................................................................. 8
Annual Assessor Requirements ............................................................................................................. 9
Market Analysis .................................................................................................................................... 10
Neighborhood/Market Area Map .......................................................................................................... 10
Parcel Data Collection and Validation .................................................................................................. 10
Analysis of Local Real Estate Trend..................................................................................................... 11
Valuation Methods
Land Valuation ............................................................................................................................... 12
Model Specification ................................................................................................................. 12
Model Calibration ..................................................................................................................... 12
Model Validation ...................................................................................................................... 12
Cost Approach Development (WPAM Volume II or other)............................................................. 13
Model Specification ................................................................................................................. 13
Model Calibration (if WPAM cost, calibration of multiplier and depreciation) .......................... 13
Model Validation ...................................................................................................................... 13
Sales Comparison Approach ......................................................................................................... 13
Income Approach ........................................................................................................................... 13
Reconciliation and Value Summary...................................................................................................... 14
Performance and Test Measures based on the International Association of Assessing
Officers (IAAO) Standard on Mass Appraisal ............................................................................... 14
Signed and Dated Certification ............................................................................................................. 15
SECTION 3 – ADDENDA
Names and Qualifications of those Providing Significant Help ............................................................ 16
Shawano County Map .......................................................................................................................... 17
Town of Hutchins Map .......................................................................................................................... 18
Vacant Land Sales ............................................................................................................................... 19
Vacant Land Sales Map ....................................................................................................................... 20
Land Tables .......................................................................................................................................... 21
Improved Sales ..................................................................................................................................... 27
Equalized Values 2011 ......................................................................................................................... 28
Neighborhood/Market Area Map .......................................................................................................... 29
Fielded Sales ........................................................................................................................................ 30
Sample Property Record Card ............................................................................................................. 31
2010 Sales List ..................................................................................................................................... 33
2008 – 2010 Sales List ......................................................................................................................... 35
2008 – 2010 Sale Properties with Photos ............................................................................................ 37
Residential Cost Tables ........................................................................................................................ 41
Sample CAMA Record File with Cost Ladder ...................................................................................... 45
Municipal Assessor's Report ................................................................................................................ 47
Exempt Computer Report ..................................................................................................................... 56
Assessor’s Affidavit .............................................................................................................................. 59
Change of Assessment Notice ............................................................................................................. 60
Work Contract or Work Agreement ...................................................................................................... 62
2
LETTER OF TRANSMITTAL
September 1, 2011
Town of Hutchins, County of Shawano, Wisconsin
Pat Meverden, Chair
W15698 E Red River Rd.
Birnamwood, WI
Dear Mr. Meverden
I am aware of, understand, and have correctly used recognized procedures, methods and
techniques necessary to produce a credible mass appraisal of the property in the Town of Hutchins,
County of Shawano, Wisconsin as of January 1, 2011. Recall that the last revaluation for town was
completed in 2010. The type of assessment cycle for year 2011 was Annual Review/Maintenance.
The municipality is both the client and the intended and authorized user of this report. Property tax
distribution is the intended use. Associated Appraisal Consultants, Inc., is not responsible for
unauthorized use of this report.
This report and the procedures, methods and techniques conform to the requirements of the current
Uniform Standards of Professional Appraisal Practice (USPAP) and Wisconsin Statutes, case law,
administrative rules, and the Wisconsin Property Assessment Manual (WPAM). USPAP in no way
interferes or supersedes the reference in 70.47(8)(i), Wis Stats., which states “The board shall
presume that the assessor's valuation is correct. That presumption may be rebutted by a sufficient
showing by the objector that the valuation is incorrect.”
We have inspected the properties based upon guidelines in the Wisconsin Property Assessment
Manual and our contract. Please understand that the detail of our inspection was within the scope
of property appraisal versus that of a building inspector or engineer. Other than those items
identified in this report, on the property record cards, or in the record file, the appraiser knows of no
adverse physical conditions affecting the properties as of the effective date of the assignment. Any
undisclosed or undiscovered physical problems could adversely affect a property’s value.
Authorized users are cautioned that the final opinions of value are based on certain information,
assumptions, and possible limiting and hypothetical conditions. When and if these exist, they are
identified in the body of this report and in the individual property record files. Any change to these
conditions could significantly affect the appraiser’s opinion of value. A due diligence review of this
report by the client and other authorized user is strongly recommended.
Respectfully submitted,
.
(Signature of Statutory Assessor)
Assessor Certification #:
,
Expiration Date:
.
3
SUMMARY OF REQUIRED DATES AND REPORTS
GENERAL DESCRIPTION OF THE JURISDICTION: The Town of Hutchins is 33.6 square miles of
mostly agricultural property. It is located 35 northwest of Shawano and wholly encompasses the
Village of Mattoon, which has a population of about 424. The town of Hutchins has a population of
about 580. The population density is very low at about 17 people per square mile. The nearest city
with a population over 50,000 is Appleton. The most common industries are construction,
agriculture, and forestry. The most common occupations are farming, carpentry, agriculture, and
construction trades. The highest causes of natural disasters are flooding, storms, and tornadoes.
There are three hospitals in the region located in Antigo (12 miles), Shawano Medical Center (26
miles), and St. Claire's Hospital for Weston in Weston (27 miles). There are Amtrak stations
Wittenberg (12 miles) and Tigerton (17 miles). There are six colleges within 71 miles. The town has
Baker Lake, Cranberry Lake, and Dollar Lake and Mud, Mondl, and Mattoon Creeks.
LEVEL OF ASSESSMENT:
99
%
7/1986
Art. IV Sec. 28
I took the assessor’s oath of office on
70.35(1), 70.35(2)
I sent personal property returns on
70.365
I mailed Notices of Changed Assessment on
5/3/11
70.10, 70.49(1),
70.32(2), 70.30
I signed the affidavit and attached it to the roll on
6/6/11
79.095
I submitted the Exempt Computer Report to DOR on
4/26/11
73.03(5)
I submitted the Municipal Assessment Report to DOR on
6/11/11
66.1105(6)(a)
I submitted all required TID information to DOR on
NA
70.44(1) 70.44(3)
I discovered and corrected omitted real or personal property.
NA
I provided written notice to the property owner about their appeal rights
Yes
12/12/10
5/18/11
I held the Open Book on
The number of parcels appealed at the Open Book was
1
The number of changes to value resulting from the Open Book was
0
70.45
I sent the revised notices on
NA
The Board of Review met on
6/6/11
70.47(1)
70.47(3)(ag)
70.52
70.73(1m)
If the BOR met and needed to adjourn, they rescheduled to
NA
I was present at the Board of Review to defend assessments.
Yes
The clerk searched for double assessments, imperfect descriptions or other errors.
Yes
The clerk informed me of omitted real estate parcels personal property accounts.
NA
When informed of palpable or omitted parcels, I reviewed and revalued the property
in error and certified the value to the clerk.
I verified that when I was informed of palpable or omitted property, it was added to
the roll by the clerk.
I was informed by the clerk or treasurer that the correction of a palpable error in the
assessment roll was made after the BOR adjourned.
4
NA
NA
NA
STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS
The appraiser’s certification in this report is subject to the following assumptions and limiting conditions:
1. This appraisal uses the guidelines and standards prescribed in the Wisconsin Property Assessment
Manual published for the current assessment year.
(DOR WPAM and Guides are located at: http://www.revenue.wi.gov/html/govpub.html
2. The appraiser is not responsible for matters of a legal nature that affect either the property being
appraised or the title to it, except for information that he or she became aware of during the research
involved in performing this appraisal. The appraiser believes the title is correct and marketable.
3. The appraiser will provide testimony and appear in court as required for the office of municipal assessor
and for any contractual agreements with the municipality.
4. The appraiser has noted on the individual property record cards any adverse conditions observed during
the inspection of the subject properties. Unless otherwise stated on the property record card, the
appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of
the property.
5. This appraisal is prepared for ad valorem tax purposes. This report and the procedures, methods and
techniques conform to the requirements of the current Uniform Standards of Professional Appraisal
Practice and Wisconsin Statutes, case law, administrative rules, and the Wisconsin Property Assessment
Manual. Depending on the property, there may be specific valuation guidelines and the reconciliation of
data must be performed according to statutes, such as with agricultural property. Because of this the
Jurisdictional Exception applies in some instances.
6. Each property has been appraised as though under responsible ownership and competent management.
7. All property within the municipality has been assessed as of January 1.
8. It is assumed that all required licenses, certificates of occupancy, consents or other instruments of
legislative or administrative authority from any private, local, state, or national government entity have
been obtained for any use on which the value opinions contained within this report are based.
9. Information, estimates and opinions furnished to the appraiser and incorporated into the analysis were
obtained from sources assumed to be reliable and a reasonable effort has been made to verify such
information. However, no warranty is given for the reliability of this information.
10. The Americans with Disabilities Act (ADA) became effective January 26, 1992. Neither a compliance
survey nor a specific analysis has been conducted for any property to determine if it conforms to the
various detailed requirements identified in the ADA. It is possible that such a survey might identify nonconformity with one or more ADA requirements, which could lead to a negative impact on the value of the
property(s). Because such a survey has not been requested and is beyond the scope of this appraisal
assignment, we did not take into consideration adherence or non-adherence to ADA in the valuation of
the properties addressed in this report.
11. Use of this report and its conclusions is limited to the administration of property taxes according to the
governing laws of the State of Wisconsin.
12. The Municipal Assessment Report (MAR), upon completion, will become part of this report.
5
CLIENT AND INTENDED USERS
The Town of Hutchins, County of Shawano, Wisconsin is the client and intended user of this report.
The official address of the client and intended user is:
Town of Hutchins, County of Shawano, Wisconsin
Pat Meverden, Chair
W15698 E Red River Rd.
Birnamwood, WI
INTENDED USE
This is a mass appraisal report for ad valorem tax purposes and it is specifically made for property
tax distribution. The intended use of this report and its conclusions is limited to the administration of
property taxes according to the governing laws of the State of Wisconsin and specifically to the
Town of Hutchins in County Shawano in the State of Wisconsin.
EFFECTIVE DATE OF APPRAISAL AND REPORT
This appraisal is for ad valorem tax purposes. The State of Wisconsin requires all property to be
valued as of January 1st in any given year. We completed the last revaluation of the town in 2010.
The appraisal date for this report is January 1, 2011. This report was submitted to the client on
(July 1, 2011).
DEFINITION OF VALUE
Definition of Market Value:
According to the Uniform Standards of Professional Appraisal Practice, the definition of market
value is the most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition
are the consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own best
interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
6
JURISDICTIONAL EXCEPTIONS
Since 1998, the assessed value of “farmland” for property tax purposes has been based on the
productive capacity of the land. The 1995-97 Budget Act changed the standard for assessing
farmland from market value to use value assessment. In a use value assessment system, an
agricultural property’s use is the most important factor in determining its assessment classification.
Chapter Tax 18 specifies the use value calculation. Agricultural building sites and residences of the
farm operator’s spouse, children, parents, or grandparents are classified as “Other” and should be
assessed at market value.
Section 70.32(2)(c)1d Wis. Stats. defines “agricultural forest” as “land that is producing or is
capable of producing commercial forest product . . . and shall be assessed at 50% of its full value”.
Wisconsin Act 33 specifies how “undeveloped land” is valued for assessment purposes under
sec. 70.32(4) at 50% of its full value. Undeveloped land includes areas commonly called marshes,
swamps, thickets, bog, or wet meadows.
Two unique agricultural products, cranberries and fish, are produced on “specialty land” and are
assessed at use value rates. Fish ponds used for animal aquaculture qualify as agricultural as they
are analogous to pasture.
IDENTIFICATION OF THE PROPERTY RIGHTS AND PROPERTY BEING APPRAISED
Property Rights Appraised: The property rights appraised are defined in Chapter 70.03 Wis.
Stats., case law and further described in the Wisconsin Property Assessment Manual. The
attributes of each property can be found in the Property Record Cards or files maintained in the
assessor’s office. These include legal descriptions, parcel identifiers, addresses, photos and
sketches. Section 70.03 Wis. Stats., states in part, “‘Real property’, ‘real estate’ and ‘land’, when
used in chapters 70 to 76, 78 and 79, include not only the land itself but all buildings and
improvements thereon, and all fixtures and rights and privileges appertaining thereto…”
A description of the properties being appraised is presented in the table under “Valuation Methods.”
This report does not include manufacturing, utility, or telecommunication properties in the
municipality as they are assessed by the Department of Revenue.
HIGHEST AND BEST USE
Highest and Best Use is defined in Chapter 7 of the Wisconsin Property Assessment Manual. In
summary, highest and best use represents the reasonably probable and legal use of vacant land or
an improved property that is physically possible, appropriately supported, and financially feasible
and that results in the highest value. For purposes of this report it is assumed that the current use
of the property represents the highest and best use unless stated otherwise on the property record
card or in the file.
ELECTRONIC DATA REQUIREMENT
Electronic parcel data is required statewide beginning in year 2013. We have met that requirement
and are currently using Market Drive software. Photos and sketches are part of this software
package.
7
SECTION 2
SCOPE OF WORK
As stated in the letter of transmittal, this report is produced as a result of the assessor’s assignment
to appraise property in the Town of Hutchins, County of Shawano, Wisconsin. The use of the values
is for the fair and equitable distribution of the property tax. To accomplish this task and produce
credible results the assessor and assessment staff completed the following tasks:
Annual
Annual assessment type: Full Revaluation, Exterior Revaluation, Interim
Review/Maint.
Market Update, Annual Review/Maintenance
Identified all sales within the municipality occurring in the year prior to the
Yes - 31
assessment date. Enter the # of sales in the next column.
Reviewed all sales for validity as arms-length transactions.
Yes - 31
Field inspected all valid sales within the municipality occurring in the year
prior to the assessment date. Enter the # of sales field inspected in the next
Yes - 22
column.
Analyzed all valid sales within the municipality occurring in the year prior to
Yes - 22
the assessment date
Conducted ratio studies for the last assessment date and the current
Yes
assessment date.
Reviewed building permits. Enter the # of building permits in the next column.
Yes - 34
Inspected new construction, Enter the # of inspections in the next column.
Yes - 34
Analyzed new construction
Yes
Field inspected all parcels with current agricultural classification. Enter the #
Yes - 129
of agricultural parcels inspected in field in the next column.
Collected income and expense information for income-producing property.
NA
Calculated and reviewed data relating to capitalization rates for appraising
NA
income-producing properties.
Identified and valued all personal property.*
Yes - 9
*All personal property accounts are buildings on leased land
The Scope of Work includes the analysis and consideration of the highest and best use of property,
along with the locational, physical, economic, and legal aspects associated with the taxable
properties.
Parcel maps are located at the county and can be found at:
http://gis.co.shawano.wi.us/portal/default.aspx. Neighborhood Delineation Maps are in this report.
The following steps were taken to determine market values for all classes of property as required by
sec. 70.32 Wis. Stats. In completing this task the assessor considers the three recognized
approaches to value; the sales comparison approach, the income approach and the cost approach
when appropriate and necessary. Due to the nature and complexity of this assignment the
assessor:
a. identifies the parcel subject to property assessment and taxation
b. defines the market area in which the subject property competes
c. identifies the characteristics that relate to value in the market area
d. specifies models that reflects the relationship among the characteristics affecting
value in the market area
e. calibrates models to determine the contribution of the individual characteristics
affecting value;
f. tests models to determine how well they function
g. applies models to the characteristics of the properties being appraised; and
h. reviews the mass appraisal results
8
ANNUAL ASSESSOR REQUIREMENTS BY ASSESSMENT TYPE
Appropriate when
Full Revaluations
Exterior Revaluation
PRC is outdated or inaccurate, or
assessment uniformity is poor or
full revaluation hasn't been done in
10 years or assessment uniformity
is poor or reassessment is
required per statute 70.75.
Most PRC information can be
verified by exterior inspection
and full revaluation completed
within past 6-9 years
Interim Market Update
PRC is deemed reliable and full
PRC is deemed reliable and
revaluation completed within past 5 revaluation was completed within
years and assessment level shows past 5 years and assessment level
unacceptable degree of variance in during previous assessment year is
within acceptable parameters
some neighborhoods or classes
Real Property affected
Land Study
All property
All property
Annual Review/Maintenance
Changes identified in column D
PLUS
Analysis of problem strata
identified from previous
assessment year
Annexed properties
Change in exemption status
Demolitions & fire damage
New construction
Change in classification
Parcels with ongoing construction
Change in legal description
Change in zoning
On-site Inspection
On-site Inspection
As necessary
As necessary
Inspect Exterior
All Buildings
All Buildings
Buildings w/changes
Buildings w/changes
Inspect Interior
All Buildings
Buildings w/changes
Buildings w/changes
Buildings w/changes
Building Measurements
Measure all buildings
Measure or verify as needed
Measure or verify as needed
Measure or verify as needed
Photos
All primary buildings
As necessary
As necessary
As necessary
Sketch
All primary buildings
As necessary
As necessary
As necessary
Required
Required
Required. Results determine
whether assessment is full value or
aggregate assessment level
Optional
Analyze neighborhoods, property
types, trends
Property Record Card (PRC)
Create new
Update/create new as needed
Update/create new as needed
Update/create new as needed
Review classifications
Required
Required
Required
Required
Validate usability of sales
Required
Required
Required
Required
Verify sales attributes
Required
Required
Required
Required
Parcels to be valued
All Parcels
All Parcels
Parcels with changes
Parcels with changes
Review / revalue properties
All Parcels
All Parcels
Parcels with changes
Parcels with changes
Full Value
Full Value
Aggregate assessment level or full
value as appropriate
Aggregate Assessment
Only if assessment changes
Only if assessment changes
Only if assessment changes
Only if assessment changes
Required
Required
Required
Required
Required
Required
Required
Required
Assessment level
Mail Notice of Change in Assessmt
Discovery & assessment of Personal
Property
Add omitted property to roll (Stat
70.44)
Correct errors in roll (Stat 70.43)
Hold open book / attend BOR
Required
Required
Required
Required
Required
Required
Required
Required
A change in color across a row indicates a change in the level of task work required compared to the preceeding assessment type
9
Market Analysis:
Hutchins, compared to Wisconsin state average, has:
• Median house value below state average.
• Unemployed percentage above state average.
• Renting percentage significantly below state average.
• Number of college students below state average.
• Percentage of population with a bachelor's degree or higher significantly below state
average. 1
Based upon the information presented in the description of the Town and summarized here, there is
a demand for rural housing with the amenities offered by rural Wisconsin including hunting and
fishing. Agriculture and forestry play an important part of the economics of the area. There is more
demand for acreage than for small urban parcels.
Neighborhood/Market Area Identification: The following table shows the number of parcels by
neighborhood, number of improved parcels, the number of vacant parcels, the average size of the
improvements, the average year built, and average land acres, and highest and best use.
Neighborhood or
Market Area Name
#
Parcels
Baker Lake
10
G7—Active Farm
42
Vac
Average
Size
Average
Yr Blt
5
5
3,109
27
15
1,724
Imp
Average
Land Acres
Overall
HBU
1991
7.8
Res
1934
30.9
Ag
Residential-AVG
33
28
5
1,756
1956
5.1
Res
River
54
13
41
2,148
1953
30.2
Res
Rural Residential
332
118
214
1,509
1963
25.9
Res
Rural Unimproved
220
0
220
0
0
32.9
Ag
Woodland Res
101
67
57
1,516
1978
7.5
Res
Neighborhood Descriptions: For purposes of sales ratio study and consistent valuation of
property, we have assigned a “neighborhood” to each parcel in the Town. Neighborhoods have
been developed according to property type and characteristics, rather than according to geographic
delineations. Below is a description of each neighborhood.
“Rural Unimproved” – Includes larger unimproved parcels of land, typically used for agricultural or
recreational purposes, such as hunting, that may include multiple land classifications excluding
“residential” classification.
“Rural Residential” – Includes larger rural tracts of land with a residential homesite or with a highest
and best use being for a residential homesite.
“Residential – AVG” – Includes smaller parcels, typically under 10 acres, that are used primarily for
residential purposes and do not have water influence.
“Residential Wooded” – Includes smaller parcels, typically under 10 acres, that are used primarily
for residential purposes, without water influence, and offer private wooded settings that create
above average quality homesites.
“River Properties” – Includes parcels used for residential purposes that have water influence from a
river or large creek. The primary water corridors in the Town are the Red River and Silver Creek.
1
http://www.city-data.com/city/Hutchins-Wisconsin.html
10
“Baker Lake” – Includes all parcels with lake frontage on Baker Lake.
“G7-Active Farm” – Includes all parcels with a homesite or building site that is classified as “other”
(class 7) and is part of an active working farm.
Parcel Data Collection and Validation: A full revaluation was completed for the town for the 2010
assessment year. Attributes collected are noted on the property record cards for the different
classes of property. The property record card and each computer record were carefully reviewed
and the data was validated during the revaluation period. (A sample record card is included in the
addendum.)
The following report is the final Statement of Assessments for 2011. The report is filed by the
municipal clerk by the second Monday in June. The report shows the property to be appraised in
the town per sec. 70.53, Wis. Stats. It shows the number of parcels in each class with the
corresponding values for land, improvements, and personal property.
Analysis of Local Trend: Sales were analyzed to determine the current trend in real estate sales
for this jurisdiction. Included in this analysis were the sales dating January 1, 2008 through
December 31, 2010. The market continues to exhibit a negative trend and it is not yet clear of
supply and demand are in equilibrium. We continue to monitor sales and listing activity.
It is my opinion that based on sales and listing activity, the local trend for the period January 1,
2011 to December 31, 2012 is level or slightly negative.
11
LAND VALUATION
As shown in the following table, there were eight valid vacant land sales in the town from 2008
through 2010.
Total
Acres
1.66
Waterfront
Type
Lake (Prime)
10/15/2008
Sale
Price
$110,000
10
None
12/7/2010
19.171
None
19.80
None
40
Sale Date
SP/Acre
Description
$66,265
Baker Lake
$20,000
$ 2,000
Valid vacant sale
2/20/2009
$54,000
$ 2,817
Rural Residential
4/9/2008
$ 20,000
$ 1,010
Rural Unimproved
None
9/11/2009
$79,840
$ 1,996
River Properties
40
None
5/13/2008
$38,000
$
950
Rural Residential
40
None
2/15/2008
$89,000
$ 2,225
River Properties
50.98
None
11/14/2008
$156,764
$ 3,075
Valid vacant sale
52.72
None
11/14/2008
$162,114
$ 3,075
River Properties
These sales were used to set the values of unsold properties within the town.
Model Specification:
I have used the comparative unit method for appraising land. Valid vacant land sales were sorted
by neighborhood, class and size. Land tables were developed using those categories. Land is
valued by the acre. Analysis showed that buyers in this area place the highest value on the first
acre. Additional acres are valued at a lesser amount. When more than one class or use is present,
the various classes, sub-classes and uses have been listed and valued accordingly.
Parcels of land that are less than one acre in size are valued using the square foot method.
Forest land has been divided into sub-categories depending upon type of wood and density with
three levels of pricing.
Model Calibration:
Based on my analysis of rural land sales having between 10 and 53 acres I have arrived at a
market value for tillable land of $2000 per acre and for swamp of $900 per acre. Adjustments were
used for forest and swamp based on the density of woods, topography and access.
Adjustments have resulted in a range of between $1300 and $3000 per acre for forest and $300 to
$1100 per acre for swamp.
Rural homesites are valued at $5,000 for the first acre and lesser amounts for additional acres. The
second acre is valued at $3500 per acre and $2700 for each additional acre.
One land sale was available on Baker Lake, which was used as a basis for the valuation of the nine
residential properties on that lake.
Influence Factors: Influence factors were considered for individual parcels to account for external
influences due to location, shape, size, access or topography and were applied when necessary.
Influences were applied to forest land according the density and wood type. These factors were
recorded at the parcel level.
12
Land Tables: Table driven land values ensure equity throughout the jurisdiction. The corresponding
land tables showing the above methods are included in the addendum. They are divided by
neighborhood and class with both acre pricing and square foot pricing for each neighborhood.
IMPROVED PROPERTY VALUATION
COST APPROACH
Model Specification:
We have used the specification as defined in Volume II of the Wisconsin Property Assessment
Manual for all of the improved property in the town. See WPAM Vol. II and the Property Record
Card PA-500 for this specification.
Commercial property is valued using the Marshall and Swift cost manual.
Model Calibration:
We used the calibrated cost figures published in Volume II of the Wisconsin Property Assessment
Manual to appraise all of the improvements in the Town. In our analysis of construction costs, the
local modifier of 1.20 as published by the Department of Revenue was found to be excessive when
compared to actual new construction costs in the Town of Hutchins. I have used a cost modifier of
1.00; I have also made minor modifications to depreciation schedules according to local conditions.
The final valuation is thus a mixture of cost as modified by local sales. It recognizes the principal
facts or information of the property and uses a consistent cost formula to develop equitable values
for all property in the Town. After calculating land values and calculating costs from the WPAM, the
cost model was tested by way of a sales ratio study. Based on this study, market adjustments were
uniformly applied according to style of home and neighborhood to more closely follow the local real
estate market. Market adjustments were also uniformly applied to various outbuilding costs, such as
barns, silos and milk houses.
Sales were analyzed from 1/1/2008 through 12/31/2010.
SALES COMPARISON APPROACH:
Although the sales comparison approach was considered, there were an inadequate number of
sales to use the approach. The lack of direct local comparable sales data does not mean a feature
that adds or detracts from value should be ignored. As appraisers, an opinion of value must still be
developed and we cannot ignore positive or negative features. Common sense and consistency
must prevail.
INCOME APPROACH:
Although the income approach has been considered, there are insufficient income-producing
properties within the town to use the approach.
13
RECONCILIATION AND VALUE SUMMARY
The reconciliation for a mass appraisal occurs at the parcel level and is included on the property
record card, the valuation printout, or in the work file. The approaches to value are considered in
conjunction with Wisconsin case law and statute. The mass appraisal results have been reviewed
to ensure fairness and equity. The data has been reconciled based on the quality and quantity of
data available and the relevance of the approaches, methods and techniques used. Recognized
and professional acceptable mass appraisal techniques have been used.
PERFORMANCE & TEST MEASURES
There were eight sales in 2008, three in 2009, and one during 2010. There were not a sufficient
number of sales during 2010 to conduct a sales ratio analysis for that year alone. A ratio study was
conducted using all valid sales from 1/1/2008 through 12/31/2010. The ratio study yielded a mean
assessment ratio of 103.3%, a median of 100% and a coefficient of dispersion of 9.3%. Due to the
span of time and low number of sales, while these results are very good, they may not be
statistically significant.
14
CERTIFICATION
I certify that, to the best of my knowledge and belief:
•
The statements of fact contained in this report are true and correct.
•
The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
•
I have no present or prospective interest in the property that is the subject of this report, and I have
no personal interest with respect to the parties involved. If either my property or property owned by
any family member is within the municipality, I certify that I have complied with the ethical provisions
of Wisconsin Statute and USPAP when appraising these properties.
•
I have no bias with respect to any property that is the subject of this report or to the parties involved
with this assignment.
•
My engagement in this assignment was not contingent upon developing or reporting predetermined
results.
•
My compensation for completing this assignment is not contingent upon the reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of the value
opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related
to the intended use of this appraisal.
•
My analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
•
Inspections of properties that are the subject of this report are outlined in the “Scope of Work” section
of this report.
•
I affirm that my data collection program incorporates quality control measures including checks and
audits to ensure current and consistent records.
•
If anyone provided significant mass appraisal assistance, I have provided their name, certification
level, certification number, and a description of the work provided by those individuals in the addenda
of this report.
•
I have been primary assessor since 1986.
•
The last revaluation was completed 2010.
PRIMARY ASSESSOR (Roll signer)
Printed Name:
Signature:
Certification #:
Expiration Date:
Company Name:
Address:
Telephone Number:
Email Address:
Web Page:
Date of Signature and Report:
Effective Date of Appraisal:
Client Name: Town of Hutchins
County Name: Shawano
15
ADDENDA
Those who provided significant assistance in the valuation of the Town of Hutchins:
Name
Certification
Level
Work Performed
Robert Kilday JQM607204C Assessor 1
Assessor, Project Manager
Julie Herman KPL820623A Technician
Data Entry, Sketching, Database Maintenance
Mark Verhyen JQF507975A Technician
Personal Property, Mobile Home Parking Fee
Paul Mauel
Adviser to Project Manager
JPP665466D Assessor 2
Mike Gilligan JQL986469A Technician
Field Appraiser/Lister
16
Town of Hutchins
Shawano County, WI
17
Town of Hutchins
Shawano County, WI
18
TOWN OF HUTCHINS VACANT LAND SALES
No
Parcel
Sale Date
Sale $
Total Ac
Type of Land
Location
NBRHD
1
026-05240-0010 2/20/2009
54,000
19.17
Closed MFL, interior,
$2817/ac
2
026-05410-0000 9/11/2009
79,840
40.00
Tillable, fallow pstr, woods, Maple & Butternut Rd.,
Section 5
$1996/ac
3
026-08210-0000 6/15/2007
50,000
38.60
2 pcls, fallow, interior
woods w/river, $1300/ac
Landlocked, W. of Maple
Rd., Section 8
Rural Unimproved
Properties
4
026-08120-0010 6/26/2008
50,000
38.60
2 pcls, fallow, interior
woods w/river, $1300/ac
Landlocked, W. of Maple
Rd., Section 8
Rural Unimproved
Properties
5
026-17340-0000 5/13/2008
38,000
40.00
Interior, s/w?, woods?
$950/ac
Landlocked, W. of Maple
Rd., Section 17
Rural Residential
6
026-19440-0030 10/15/2008
110,000
1.66
Baker Lake, $387/FF
Bakers Lake Ln., Section
19
Baker Lake
7
026-20410-0000 10/15/2007
122,500
40.00
Good forest on Maple Rd.
$3062/ac
Maple Rd., Section 20
Rural Unimproved
Properties
8
026-21130-0000 8/15/2007
161,000
68.25
2 pcls, tillable, pasture, s/w,
$2264/ac
W. Cherry Rd., Section 21
Exempt
9
026-23230-0000 9/28/2007
185,000
80.00
2 pcls, tillable, pasture, s/w,
$2312/ac
Valley Rd., Section 23
Rural Unimproved
Properties
10 026-25320-0030 12/5/2007
55,000
20.00
Building site, new pond,
$2750/ac
Red River Rd., Section 25
Rural Residential
11 026-32220-0011 4/9/2008
20,000
19.80
Tillable, s/w, woods,
$1010/ac
Hemlock & Lake Rd.,
Section 32
Rural Unimproved
Properties
12 026-33330-0000 2/15/2008
89,000
40.00
Tillable, s/w, woods,
$2225/ac
Maple & Silver Creek Rd.,
Section 33
Rural Unimproved
Properties
13 026-35230-0000 11/14/2008
162,114
52.72
Good wooded parcel, high
hill, $3075/ac
Meadow Rd., Section 35
River Properties
14 026-35310-0030 11/14/2008
156,764
50.98
Good wooded parcel, high
hill, $3075/ac
Meadow Rd., Section 35
River Properties
Landlocked, W. of Maple
Rd., Section 5
Rural Residential
River Properties
0
19
Town of Hutchins
Shawano County, WI
Vacant Land Sales
1
2
3
4
5
8
9
7
6
10
11
13
12
14
20
21
22
23
24
25
26
TOWN OF HUTCHINS
IMPROVED SALES 2006 - 2010
Sale Year
Improved Sales
Average Sale Price
Median Sale Price
Aggregate Ratio
Average Ratio
Median Ratio
2006
4
101,750
105,000
2007
5
115,300
110,000
2008
8
191,413
169,500
2009
3
128,467
150,000
2010
1
170,000
170,000
0.783
0.845
0.807
0.837
0.895
1.023
0.735
0.834
0.821
1.052
1.040
1.000
1.050
1.050
1.050
27
Statement of Changes in Equalized Values 2010 to 2011
Source: Wisconsin Department of Revenue
28
Town of Hutchins
Shawano County, WI
Approximate Neighborhood Delineation Map
River
Residential
Baker
Lake
Wooded
Residential
River
Rural
Residential
Ag
29
Wisconsin Department of Revenue
Fielded Sales Summary Report
2007 through 2009
The Fielded Sales Summary Report is developed by the Wisconsin Department of Revenue (DOR),
and is reprinted with permission. The following report summarizes DOR's annual Unit Value Sales
Analysis 1 as it pertains to the Town of Hutchins. Note that the sales analysis provides market value
ranges for land in classes 4, 5, 5m, 6, and 7 that is in support of the municipally assessed values.
PLACE Report here
1
Unit value sales analysis is used by DOR to value property classified by municipal assessors as
agricultural forest land, undeveloped, productive forest land or other (farm sets and the land
supporting them). Sales (38 acres or larger) are verified and broken down into their component
parts to identify average selling prices per acre and the contributory value of any improvements
(houses, barns, and other improvements to the land). The average selling prices per acre of land
are then used to estimate the market value of all lands so classified by municipal assessors.
30
Sample Property Record Card
31
32
33
34
Town of Hutchins
Residential Sales Analysis
Assessment Year 2011
Parcel Number
Street No Street Name
Nbhd
Nbhd Grp
UOM
Width Depth
Lot SF
Tot Ac
Style
Story
Age
026-22120-0020
N15485
8/7/2008 $110,000 Rural Residential Residential Acres
0
0
609840
20.92 Ranch
1 Story
1989
026-15440-0000
W15348 Red River Rd E 3/31/2008 $283,000 River Properties Residential Acres
0
0
968426 22.232 Ranch
1 Story
1983
6/18/2008 $375,000 Wooded ResidentResidential Acres
0
0
958320 98.377 Cottage
1.5 Story
2006
026-05140-0000
Red River Rd E
Sale Date Sale Price
Maple Rd
026-32230-0000
W16475 Hemlock Rd
10/13/2008 $210,000 Rural Residential Residential Acres
0
0
522720
40 Manufactured Hom1 Story
1999
026-33340-0000
W15960 Silver Creek Rd 11/14/2008 $129,000 Rural Residential Residential Acres
0
0
217800
5 Modern Two Story 2 Story
1993
026-32110-0010
W16156 Hemlock Rd
$73,000 Rural Residential Residential Acres
0
0
137650
026-33340-0000
W15960 Silver Creek Rd 6/19/2009 $150,000 Rural Residential Residential Acres
0
0
217800
026-11240-0010
N11557
$61,500 Rural Residential Residential Acres
0
0
159038
3.651 Two Story Other
1 Story w/attic 1935
026-23110-0020
W14937 Red River Rd
8/26/2009 $205,500 Wooded ResidentResidential Acres
0
0
653400
30.99 Ranch
1 Story
1960
026-15440-0020
N10965
5/27/2010 $170,000 Rural Residential Residential Acres
0
0
130680
3 Modern Two Story 2 Story
2005
Hillview Rd
Elm Rd
10/13/2008
11/6/2009
35
3.16 Residential O/S
1 Story
1900
5 Modern Two Story 2 Story
1993
Town of Hutchins
Residential Sales Analysis
Assessment Year 2011
Heating Cooling BR FB HB FBLA RecRm SFLA AttGarSF OutBldg $
Land
Imp
Total
Ratio
Gas
3
1
0
0
0 1254
624
5,900
$17,800
$91,000 $108,800
0.99
Gas
4
2
0 1434
0 3482
576
7,600
$63,100 $219,800 $282,900
1.00
$86,600
$89,100 $175,700
0.47
Gas
A/C
3
2
0
0
0 1414
Gas
A/C
3
3
1 1508
0 3204
1700
22,300
$24,000 $159,500 $183,500
0.87
4
1
0
0
0 2580
912
12,800
$16,600 $133,400 $150,000
1.16
2
1
0
0
0
$11,600
$73,400
1.01
Gas
4
1
0
0
0 2580
$16,600 $133,400 $150,000
1.00
Oil
3
1
0
0
0 1001
700
$13,000
$48,000
$61,000
0.99
3
1
0
0
0 1392
31,700
$69,500
$99,600 $169,100
0.82
4
3
0
0
0 2234
$11,200 $167,300 $178,500
1.05
Gas
Gas
Gas
Gas
A/C
A/C
0
984
4,000
912
840
12,800
0
$61,800
36
Sale Property Pictures
1
Ranch
N15485 Red River Rd E
Sale: $110,000 Date: 8/7/2008
Assessment Ratio: 0.99
SF 1254
Year Built: 1989
1 Story
FB: 1HB: 0 BR: 3
HVAC: Gas
RecRm: 0SF, FBLA: 0, SFLA: 1254SF
Out Bldgs: $ 5,900
Lot Size: 609840SF, Total Ac: 20.92Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-22120-0020
2
Ranch
SF 3482
W15348 Red River Rd E
Sale: $283,000 Date: 3/31/2008
Assessment Ratio: 1.00
Year Built: 1983
1 Story
FB: 2HB: 0 BR: 4
HVAC: Gas
RecRm: 0SF, FBLA: 1434, SFLA: 3482SF
Out Bldgs: $ 7,600
Lot Size: 968426SF, Total Ac: 22.232Ac.
Front Foot: 0 Depth: 0
Nbhd: River Properties
Nbhd Group: Residential
Parcel No.: 026-15440-0000
3
Cottage
SF 1414
Maple Rd
Sale: $375,000 Date: 6/18/2008
Assessment Ratio: 0.47
Year Built: 2006
1.5 Story
FB: 2HB: 0 BR: 3
HVAC: Gas A/C
RecRm: 0SF, FBLA: 0, SFLA: 1414SF
Out Bldgs: $ 0
Lot Size: 958320SF, Total Ac: 98.377Ac.
Front Foot: 0 Depth: 0
Nbhd: Wooded Residential
Nbhd Group: Residential
Parcel No.: 026-05140-0000
Prepared by Associated Appraisal Consultants, Inc.
37
Sale Property Pictures
4
Manufactured Home
SF 3204
W16475 Hemlock Rd
Sale: $210,000 Date: 10/13/2008
Assessment Ratio: 0.87
Year Built: 1999
1 Story
FB: 3HB: 1 BR: 3
HVAC: Gas A/C
RecRm: 0SF, FBLA: 1508, SFLA: 3204SF
Out Bldgs: $ 22,300
Lot Size: 522720SF, Total Ac: 40Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-32230-0000
5
Modern Two Story
SF 2580
W15960 Silver Creek Rd
Sale: $129,000 Date: 11/14/2008
Assessment Ratio: 1.16
Year Built: 1993
2 Story
FB: 1HB: 0 BR: 4
HVAC: Gas
RecRm: 0SF, FBLA: 0, SFLA: 2580SF
Out Bldgs: $ 12,800
Lot Size: 217800SF, Total Ac: 5Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-33340-0000
6
Residential O/S
W16156 Hemlock Rd
Sale: $73,000 Date: 10/13/2008
Assessment Ratio: 1.01
SF 984
Year Built: 1900
1 Story
FB: 1HB: 0 BR: 2
HVAC: Gas A/C
RecRm: 0SF, FBLA: 0, SFLA: 984SF
Out Bldgs: $ 4,000
Lot Size: 137650SF, Total Ac: 3.16Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-32110-0010
Prepared by Associated Appraisal Consultants, Inc.
38
Sale Property Pictures
7
Modern Two Story
SF 2580
W15960 Silver Creek Rd
Sale: $150,000 Date: 6/19/2009
Assessment Ratio: 1.00
Year Built: 1993
2 Story
FB: 1HB: 0 BR: 4
HVAC: Gas
RecRm: 0SF, FBLA: 0, SFLA: 2580SF
Out Bldgs: $ 12,800
Lot Size: 217800SF, Total Ac: 5Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-33340-0000
8
Two Story Other
N11557 Hillview Rd
Sale: $61,500 Date: 11/6/2009
Assessment Ratio: 0.99
SF 1001
Year Built: 1935
1 Story w/attic
FB: 1HB: 0 BR: 3
HVAC: Oil
RecRm: 0SF, FBLA: 0, SFLA: 1001SF
Out Bldgs: $ 700
Lot Size: 159038SF, Total Ac: 3.651Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-11240-0010
9
Ranch
SF 1392
W14937 Red River Rd
Sale: $205,500 Date: 8/26/2009
Assessment Ratio: 0.82
Year Built: 1960
1 Story
FB: 1HB: 0 BR: 3
HVAC: Gas A/C
RecRm: 0SF, FBLA: 0, SFLA: 1392SF
Out Bldgs: $ 31,700
Lot Size: 653400SF, Total Ac: 30.99Ac.
Front Foot: 0 Depth: 0
Nbhd: Wooded Residential
Nbhd Group: Residential
Parcel No.: 026-23110-0020
Prepared by Associated Appraisal Consultants, Inc.
39
Sale Property Pictures
10
Modern Two Story
SF 2234
N10965 Elm Rd
Sale: $170,000 Date: 5/27/2010
Assessment Ratio: 1.05
Year Built: 2005
2 Story
FB: 3HB: 0 BR: 4
HVAC: Gas
RecRm: 0SF, FBLA: 0, SFLA: 2234SF
Out Bldgs: $ 0
Lot Size: 130680SF, Total Ac: 3Ac.
Front Foot: 0 Depth: 0
Nbhd: Rural Residential
Nbhd Group: Residential
Parcel No.: 026-15440-0020
Prepared by Associated Appraisal Consultants, Inc.
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44
45
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48
49
50
51
52
53
54
55
56
57
58
59
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INSERT CONTRACT OR WORK AGREEMENT HERE
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