Property Reassessment

September 4, 2008

‘Great rooms’ values causing disagreement

Homes with floor-to-roofline open spaces assessed as if they have second-floor area.

By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter
Jennifer Learn-Andes on Facebook   |   @TLJenLearnAndes on Twitter

Some Luzerne County officials disagree with the way the reassessment company handled the valuation of living space beneath cathedral ceilings, but the remedy isn’t clear.

These floor-to-roofline open spaces, commonly known as “great rooms,” have become more popular.

When calculating the new values, 21st Century Appraisals Inc., the reassessment company, counted the non-existent second-floor area as living space square footage.

But 21st Century argued that because the great rooms are considered upgrades, the company could have factored in additional value under that category anyway, instead of counting the non-existent floor area.

Minority Commissioner Stephen A. Urban said he disagrees with 21st Century’s approach, saying the square footage should only include space on which people can walk.

Bruce Sauter, the county’s independent reassessment consultant, said Wednesday he learned about 21st Century’s great room valuation approach during a recent meeting with the county.

Sauter, who works for the International Association of Assessing Officers, said the square footage should have been accurately based on real floor space. Great rooms should be documented separately as architectural design enhancements that add value, he said.

“I’m not saying the value they arrived at is bad, but PR-wise it’s not good,” Sauter said. “My general recommendation is they shouldn’t call something square footage if it isn’t.”

Sauter advised the county to come up with a plan to correct the record on homes with great rooms.

One solution would be an information request mailer to all homes that may contain great rooms, Sauter said.

“I suggested in the long run it needed to be changed, but in the short run they are between a rock and hard place,” Sauter said.

Tim Barr of 21st Century said the approach shouldn’t be changed now because it would create confusion and would have minimal, if any, impact on the new assessed values.

Instead, he believes the county should collect data about great rooms for the next reassessment, which county officials plan to undertake in five years.

The topic of great rooms received some attention months ago because a 21st Century certified evaluator had mistakenly allowed a square-footage reduction to a property owner during an informal review, company representatives say.

The adjustment never took effect, but media reports about it prompted other property owners to bring photographs of their open space to informal reviews, seeking similar square-foot reductions.

House will be picked up, eventually

A Luzerne County property owner has sent several e-mails to county officials questioning why no assessed value has been placed on a property at 443 Ice Harvest Drive in Rice Township.

County Assessment Office Director Tony Alu said the home, owned by A2 Spec Homes LLC, has not received a value because the developer “spec home” is not occupied and hasn’t been sold. The law says such structures can’t be valued within 30 months unless they are sold or become occupied, Alu said.

The vacancy period has not passed because the county received a building permit for the structure in June 2006, Alu said.

The county’s reassessment company has valued the 3.4 acres at $130,700, Alu said.

Tim Barr said the approach shouldn’t be changed now because it would create confusion and would have minimal, if any, impact on values.

Jennifer Learn-Andes, a Times Leader staff writer, may be reached at 831-7333.

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