2021 Partial Statistical Update (Revaluation)
Real estate property values will be updated in 2021. Municipal Assessors are tasked with keeping property values in line with each property’s fair market value. Fluctuations in the real estate market necessitate adjustments in assessed values; the State requires assessed values to be +/- 10% of fair market values (determined by sale data). Every five years, a full revaluation is required by State law; Barrington’s most recent full revaluation was in 2019. If average values compared to fair market value (the equalized ratio) falls outside the 10% threshold between full five-year revaluations, it is important to make a correction; this is called a partial statistical update. Barrington performed a partial statistical update in 2017. Barrington’s real estate market continues to see limited supply and increasing demand which results in increased fair market values. In 2020, the equalized ratio was 90.6% and so far this year, the emerging ratio is 81%. The 2021 partial statistical update will change assessed values and property owners will receive their updated values in the second half tax bill (October/November 2021).
September 13, 2021 (Select Board Meeting)
The Town’s Assessor is complete with the 2021 Partial Statistical Update (Revaluation). This process was necessary due to the real estate market causing Barrington’s equalized ratio to depart from the Department of Revenue Administration (DRA) required +/- 10%. It is important to remember that this process would be equally necessary if the real estate market brings values more than 10% lower than assessed values. Below you will find a full listing of all 145 sales utilized for the 2021 Revaluation. Additionally, details and frequently asked questions from the 2019 Revaluation can be found here: https://www.barrington.nh.gov/assessing-office/files/2019-revaluation-faq. These FAQs equally apply to the 2021 Revaluation.
The Assessor utilized 145 qualifying sales from October 1, 2019 through August 10, 2021 to understand how the real estate market compared to Barrington’s assessed property values. The results showed that the median ratio was 75%; meaning Barrington’s assessed values represent three-quarters of the sale price (far outside the +/- 10% dictated by the DRA.
See attached, 2021 Revaluation Memo
The changing values will increase the total assessed value of Barrington by 20%. The full detail of the assessed value is included in the MS-1 Form. I have attached 2020 and 2021.
See attached, 2020 MS-1
See attached, 2021 MS-1
It is important to keep in mind that this increase in assessed value will be accompanied by a reduction in the tax rate. I estimate the tax rate to drop about 18% when it is set in October which will result in a tax rate in the $18-$19/$1,000 of value range. It is important to remember that while the median increase in value is 20%, some properties will see a larger increase in value and others will experience smaller. As a result, some property owners will experience a tax bill increase while others may experience a tax bill decrease. The State law is simple; municipalities are required to assign fair market value on all properties in Town. If any property owner believes that the Town erred in this effort, this FAQ details how to contact the Assessing Office to discuss and file an abatement if the property owner remains in disagreement with the Town.
August 30, 2021
The Assessing Department compiled and published a list of Barrington property sales data from April 1, 2020 through August, 2021. These are the values used to adjust property values in Barrington for the 2021 partial statistical update.
See attached, 2021 Sales Data
April 12, 2021 (Select Board Meeting)
At the November 16, 2020 meeting, the Select Board reviewed the need for a statistical update (revaluation) in 2021 based on the equalized ratio. Sale values continue to rise, and it is important to keep the assessed values in line with the market value. If Barrington’s Equalized Ratio exceeds 10% (+/-), an update would be required. The 2021 update would be similar in timeline and scope to the 2017 statistical update.
The Assessor prepared a memo for the Select Board and community in order to better understand what to expect during the 2021 statistical update. It is important to note that the ratios included are preliminary and there remains over six months of sale data which will be incorporated into the revaluation.
See attached, 2021 Revaluation Memo
Additional information will be provided throughout the revaluation process.
November 16, 2020 (Select Board Meeting)
The Town’s Assessor has completed the preliminary ratio of assessed values.
See attached, Preliminary Ratio Report 2020 Barrington
Once the State finalizes the 2020 Equalized Ratio, the Board may need to consider commissioning a statistical update for 2021. This would be similar in timeline and scope to the 2017 statistical update. Sale values continue to rise, and it is important to keep the assessed values in line with the market value. If Barrington’s Equalized Ratio exceeds 10% (+/-), an update would be required. The cost for a statistical update in 2021 would be approximately $18,000 in addition to our annual assessing services.