Despite slump, values rising

Despite the housing slump, the taxable value of property has increased more than 7 percent on the average in DuPage County.

Notices of new property assessments started landing in mailboxes last month. They reflect a comprehensive review of all properties that occurs every four years.

The average value of a property in DuPage has risen between 7 percent and 8 percent, DuPage Supervisor of Assessments Craig Dovel said.

The juxtaposition of soaring property values and a sagging housing market has some homeowners, such as Bloomingdale-area resident Lillian Fortman, seeing red.

"The real estate market has not increased by that amount," she said.

Fortman's assessment went up $11,500, to $162,740, a typical 7.6 percent jump.

"I'm not sure where I'm going to get any relief," Fortman said, adding if the trend continues, "At some point I won't be able to live in my house anymore."

But a slumping housing market now doesn't automatically trigger lower assessments, officials said.

Township assessors started estimating new property values months ago, looking at a variety of factors, including the sale price of properties and any improvements that have occurred.

The local calculations are supposed to conform to the state of Illinois, which conducts its own assessment based on property sales during a three-year span. If the local results are off, the state applies an equalizing factor.

"People say the market's going down," Naperville Township Assessor Warren Dixon said, "but there was no reduction in the market in 2006. It was probably in the early or mid part of 2007 that everything started to slow down."

The median home price in Naperville Township still is about $475,000, Dixon said.

In Milton Township, the assessment increase is hovering around 7 percent.

"It's been fairly steady," Milton Township Assessor Robert Earl said.

Homes sales are down, but prices are holding firm for the most part in the 330 neighborhoods the township evaluates. However, in a few neighborhoods there has been a dip, which is "unusual" Earl said.

The Standard and Poor's/Case-Shiller Home Price Indices measure fluctuations in the residential housing market. A recent listing showed a 1.3 percent drop in the Chicago metropolitan area.

Tracy Cross, who heads up a real estate research firm in Schaumburg, calls the discrepancy between assessments and the market "out of whack."

"While there's not erosion on prices with existing homes, there's a major problem in that the value may be holding, but the market is down 30 percent," Cross said.

"This sense of the market is not being taken into consideration."

DuPage property values traditionally are very strong, Dovel said.

"If it comes to a point where values level off or go down, it will take some time for assessments to catch up with the process because of the three-year weighted average," he noted.

Beating the rap

Experts say a higher assessment won't necessarily translate into a painful tax bill because most local governments are limited by tax caps.

"Just because you're assessed valuation is going up 7.2 percent doesn't mean your taxes will," Earl said.

But for those experiencing a double-digit boost, a property tax jump could loom.

The good news is you can appeal your assessment to the county's board of review.

But be prepared, cautions Dovel, who has a few tips for those ready to fight.

"I'd strongly encourage them to start off by having an informal conversation with the township assessor," Dovel said.

That initial talk could clear up whether there's any errors, such as your one-story ranch being listed as a three-story teardown.

If you go the appeals route, it helps to have a current appraisal of your property's market value that can be compared with the assessment.

Another tip is to do the research and see how your home's assessment stacks up against similar properties in the neighborhood that have recently sold.

For example, if the assessment on your two-story Cape Cod correlates to $300,000 but other two-story houses down the street are selling for $250,000 -- you've got a decent case.

"If you go armed with those recent sales, you have something constructive to talk about," Dovel said, "but if you say, 'Hey, my assessment went up 80 percent and that's not fair,' there's not really much of dialogue."

Assessment facts

• When making assessments, officials use property sales information, but they also hear from municipalities about improvements made by residents, such house additions and decks.

• Nine township assessors in DuPage are responsible for appraising 330,000 properties.

• If you're appealing your assessment and want to check out sales of comparable dwellings in the area, the township assessor should have that information.

• Complaints about your assessment must be filed with the DuPage County Board of Review no later than 30 consecutive days after assessment data is published.

• For information, contact the board of review at (630) 407-5888 or the county supervisor of assessments at (630) 407-5858. Or you can visit www.dupageco.org/soa or call your township assessor's office.