Sponsored By
An organization or individual has paid for the creation of this work but did not approve or review it.

ADVERTISEMENT

ADVERTISEMENT

Moorhead homes assessed at lower values

Fargo-Moorhead can expect to see more million-dollar homes as the community's economy expands, according to local appraisers and assessors. "There's a lot of wealth in town, and a lot of it is not the traditional wealth," said Pete Doll, director...

Fargo-Moorhead can expect to see more million-dollar homes as the community's economy expands, according to local appraisers and assessors.

"There's a lot of wealth in town, and a lot of it is not the traditional wealth," said Pete Doll, director of development services in Moorhead.

Top-valued homes in Moorhead approach those in Fargo in terms of size and quality. They tend to be assessed at lower values because Moorhead hasn't had as many sales in the $500,000-and-up category, he said.

"We're a few years behind what Fargo is seeing," Doll said. A 2003 Moorhead housing study recommends the city increase its effort to attract larger, higher-priced homes, he said.

The highest-assessed home in Moorhead is owned by Steve and Eileen Scheel. Though assessed at $618,000, the home built in 1992 compares well with the top five in Fargo, with 6,362 square feet of space above grade.

ADVERTISEMENT

Cities and counties try to assess residential properties at a price that reflects their market value. To do that, government assessors look at the cost of construction and sales of comparable properties, Doll said.

Wanda Wilcox of the city of West Fargo said developer Bruce Clapham is planning a high-end addition on the southeast section of the city's rapidly expanding Charleswood Addition. West Fargo now has five properties assessed at more than $500,000.

In Minnesota, the taxing jurisdiction must tour a property at least once every five years, Doll said. That allows assessors to look for improvements that may not have been noted through the building permit process.

The starting point for assessing new properties is the value of the home's original building permit.

Home builders tend to understate value on building permits, Doll said.

"Until we have a lot of sales above $600,000, we're going to be pretty conservative in our assessments."

Gary Bock, assistant Moorhead city assessor, said Tessa Terrace in south Moorhead is attracting many new high-end homes. He expects Horizon Shores, a lake development near the new Horizon Middle School, to attract $500,000-and-up properties.

People who can afford homes in that range tend to be builders rather than buyers, Doll said.

ADVERTISEMENT

After all, if you want a dream home, why buy someone else's dream? You may as well create your own.

"A lot of dream homes have a lot of dysfunction built into them," Doll said. "If you have a lot of money you can build it any way you want. Maybe you don't care about resale."

Some of the best buys on the market can be found on the high end, Doll said. "The portion of the buying market after that type of home is very slim."

Readers can reach Forum reporter

Gerry Gilmour at (701) 241-5560

What To Read Next
Artificial intelligence can now act as an artist or a writer. Does that mean AI is ready to play doctor? Many institutions, including Mayo Clinic, believe that AI is ready to become a useful tool.
Columnist Carol Bradley Bursack lists the various reason why some older adults may begin to shuffle as they age.
The Buffalo Bills safety who suffered a cardiac arrest on Monday Night Football in January is urging people to learn how to save lives the way his was saved.
Josh Sipes was watching an in-flight movie when he became aware the flight crew were asking for help assisting a woman who was experiencing a medical problem.