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Broward County 2022 June 1st Estimated Market Value Breakdown
It is that time of year again! The time when all 67 Property Appraisers across the State of Florida provide a first look into the estimated Market, Assessed and Taxable Values for all properties located in their County. The Property Appraisers across the State of Florida are tasked annually with estimating the Fair Market Value for all the Real Estate Parcels and Tangible Personal Property Accounts located within their respective jurisdictions. On May 27, 2022, the Broward County Property Appraiser’s Office submitted their June 1st Estimate of Taxable Values to the taxing authorities located within Broward County. These values represent the “Working Values” and are subject to change until the TRIM or Value Notices are sent out in mid-August 2022. You can read the press release and see the aggregated data by following this link.
A review of the data shows that values are up! Way up! Now remember, the property appraiser is valuing properties as of January 1st of each year, utilizing the prior 12 months of data to produce their opinions of value. For the 2022 tax year, that valuation date is January 1, 2022, using data from calendar year 2021. There is a stark difference from 1/1/2021 to 1/1/2022. The 2021 values were tamped down due to the COVID-19 Pandemic that shut the world down for much of 2020. That trend seems to have shifted during 2021 resulting in double digit increases in 12 of 21 categories of real property laid out in the below grid.
In a stark contrast to 2021, Hotels/Motels are up 14.69% as compared to a decrease of 9.68% from 2020 to 2021. Even more is the turnaround of Vacant Industrial, showing an increase of 37.20% as compared to a decrease of 4.09% from the prior year. Not surprising, is the increase in Multifamily properties greater than 9 units, which saw an increase of 22.83% year-over-year. Couple this with the 17.46% increase in Single Family Home values and you have dramatic increases in the price of housing in Broward County. Overall, the total Fair Market Value of all real property within Broward County increased 13.86% from 2021 to 2022 as compared to 5.43% from 2020 to 2021. One thing to keep in mind, is that hidden in this data is the addition of new construction to the tax roll for 2022. Any projects that were completed during 2021 are now included in these 2022 estimated Fair Market Values.
As shown in the below chart, the red line indicates the percentage change in value from 2020 to 2021, while the light blue line represents the percentage change in value from 2021 to 2022. Based on this data, the market has recovered whatever may have been lost during 2020 and has soared into new valuation territory. The question remains, are these increases based on solid fundamentals, or are there underlying discrepancies in expectation and reality that have yet to come to light? One hopes the former is the case!
There are many factors to consider when reviewing this generalized data; the type of properties that are included in each general use code, the locations, the ages and much more. What is presented in the above chart and grid, is the aggregation of all real property parcels categorized as a specific use code per the Department of Revenue guidelines for assessing real property in the state of Florida. This data is very useful to provide an overview of the health of the Broward County real estate market as of 1/1/2022 for each of the major general property types (use codes), however, a breakdown of the commercial properties would be needed to truly analyze the changes in value for specific property types e.g., Retail Centers, Office Buildings or Restaurants, etc.
On a more granular level, how does the Property Appraiser’s Office arrive at the Fair Market Value for each parcel that makes up this data?
Each year, with a valuation date of January 1st, the property appraiser examines and analyzes the state of the market for all property types. They will review income and expense information for income producing properties, analyze current construction costs and review and analyze the sales of comparable properties that have taken place in the prior calendar year. All this information is input into their Computer Assisted Mass Appraisal (CAMA) system and is used to assist the property appraiser’s highly skilled residential and commercial appraisers in valuing each real property parcel. Certainly, no easy task. Especially considering the type of market that we have been experiencing over the last 18+ months.
While the Property Appraiser’s Office is highly skilled in their annual valuation process, mass appraisal is not perfect, nor should it be expected to be perfect when valuing over 750,000 real property parcels. With property values on the rise, this is where it becomes imperative to have a skilled property tax consulting firm assisting with the review of your annual Fair Market Values to ensure values are fair and equitable.
The amount you will pay in property taxes during 2022 is directly based on the County’s opinion of the Fair Market and Assessed Value for your property. The Property Appraiser’s Office is in the process of finalizing their 2022 Fair Market Values now with their “Working Values” being shown on their website. If you feel the value of your property is too high or just wish to have an independent review, we encourage you to call Nick Mau at (954) 906-8066. You may also email Nick at n.mau@first-pointe.com.
FirstPointe Advisors, LLC is a full-service ad valorem tax service provider. We provide you with the experience of a national firm with a regional focus. At FirstPointe Advisors, LLC, you come first. We strive to provide innovative solutions to your property tax needs. With our experience and first-class client service, we will create an easy review and appeal process for you. Our experience spans across Florida’s 67 counties in representing owners of residential and commercial properties.
