Finding value

Although he “didn’t grow up thinking I wanted to be a county assessor,” there are many ways it seems newly instated Waseca County Assessor Brock Nelson, who took office July 11, seems born and bred for the position.

Point one: He comes from a Waseca family closely associated with real estate. His grandfather Dwain was and his father, Blain, and uncle, Blair, still are real estate agents here in town. Brock remembers that property values, interest rates, return on investments (ROI’s), comparable sales,  and other related terms had a way of influencing family discussions during gatherings throughout his childhood.

Point two: Although he understands and appreciates the real estate market, he says he does not want the life of a real estate salesman, since people seem to want to look for a new home at times that interfere with family gatherings.

Point three:  A decade or more ago, when he first began considering a career as an assessor, he arranged to shadow then Waseca County Assessor Mark Vagts.

Point four: He is closely connected to the Waseca community. He grew up here, graduating from Waseca High School in 2002. He, his wife Karissa, and their children (Braxton, 11; Kinsley, 9; and Brolin, 6) live in town, and did even when Brock’s job as assistant assessor in Steele County had him commuting to Owatonna every day.

But even with all those connections, becoming qualified to serve as county assessor takes a lot of effort. The state requires at least five years of training and offers three levels of certification for the position. Assessors and their assistants must be well acquainted with the process of appraising property, but they must also be intimately familiar with the system used to determine the “taxable value” of real estate. In addition to all the training, testing, and certifications, Brock also served as assistant to the Steel County assessor for most of 5 years.

Reasons people have to visit the assessor’s office include getting specific information about the characteristics of their property, for example the square footage of their home or the current market value. Members of the public might also speak with the office to appeal the assessed value it has on record. “If people believe we have overlooked something, we can schedule an appointment to visit the property and reevaluate our records,” Brock explains.

Most of what keeps the staff of the Waseca County Assessor’s office, including three appraisers and one assessment technician in addition to the assessor himself, are the jobs of “classifying” and “valuing” all property in the county. 

The two words are, perhaps, more complicated than they might seem. As for determining the fair market value of a piece of property, that task is based on well-known standard characteristics: size, location, quality, age, and other factors which are then modified by what is selling during the sales study period.. Perhaps the hardest part of maintaining accurate records on property value is keeping up with markets, which fluctuate depending on a range of factors. For example, last year, “Values were up 20% over previous years.”

As for “classifying,” that, too, is surprisingly complex. Brock explains that most people are familiar with some of the common classifications: residential, commercial, industrial or agricultural. What they typically have no reason to know is that the state asks assessors to place properties in as many as 57 different “classes.” Among those that most people might not think of are marinas, bed and breakfast facilities, manufactured home parks, rental properties and even “seasonal restaurant on the lake.”

Brock explains that, although the state does not receive any of its income based on residential property values, it still regulates the process of assessment to “make sure we’re treating people uniformly and fairly” from county to county.

In keeping with “uniform” treatment, the state also requires that someone from the assessor’s office be physically present on every parcel of property in the county at least once every five years. The visit is intended to assure that any records on file are in alignment with the actual state of the property. “Things change,” says Brock. “The property might not be maintained well, resulting in a lower market value. There might be additions or improvements which increase its market value.

“The physical visit is a practical way to assure we’re being fair,” he continues. “We’re not out there to ‘stick it’ to people. We’re trying to determine what the property would sell for if it were on the market.”

Any resentment people feel when the assessor informs them that their property value has increased, Brock explains, is misplaced.

“Even though your property value has gone up, that doesn’t automatically mean your taxes will be higher,” he says. He further explains that property values are a relative number used to divide the “tax burden” across all property owners.

Entities which receive income based on real estate values are cities, counties, and school districts. Those organizations plan their budgets for a given year based on expected costs. “So the amount of taxes property owners pay is their relative share of that budget,” explains Brock. “People who own a lot of real estate, or who own particularly valuable property will pay taxes based on that value.

“But if everyone’s property value has risen, then the proportion of tax they pay will not necessarily mirror that increase.”