New Hampshire residents have long prided themselves on living in one of the prettiest states in the country. Before the state's license plates carried the slogan, "Live Free Or Die," they were stamped with the word, "Scenic." But even scenery comes at a price. In a state where property taxes fund so much of state and local government, determining just how much a good view adds to the value of a private home is becoming increasing important. In some towns, they call it a "view tax." New Hampshire Public Radio's Doug MacPherson reports.
PEOPLE WHO MAKE THEIR LIVING ASSESSING PROPERTY VALUES IN NEW HAMPSHIRE HATE THE TERM "VIEW TAX." JUST ASK GARY ROBERGE, HEAD OF "AVITAR ASSOCIATES," IN CHICHESTER, THE LARGEST ASSESSMENT FIRM IN THE STATE.
TAPE GARY ROBERGE: there's not a view tax. :02
ON THE OTHER HAND, ROBERGE SEES HOW THE TERM MIGHT COME TO BE USED BY HOMEOWNERS WHO ARE FEELING THE STING OF HIGHER PROPERTY ASSESSMENTS.
TAPE GARY ROBERGE 557 Well, i guess i understand how people look at it, because, 5 years ago, i would say, the majority of people that were assessing, probably didn't break out or identify the view component. :10
FROM ROBERGE'S PERSPECTIVE, THE "VIEW COMPONENT" HAS ALWAYS BEEN A FACTOR IN DETERMINING A PROPERTY'S WORTH.
TAPE GARY ROBERGE 1734 we didn't create this. If you go back 15 years you'll be able to find adds from realtors that say "nice view." So view has always been an aspect of value. It's just more recently that we as assessors are starting to identify it in a little more precise manner. :17
THESE DAYS, IN MANY NEW HAMPSHIRE COMMUNITIES, ASSESSORS ARE TRYING TO PUT A PRICE TAG ON VIEWS. THEY DO SO BY COMPARING THE SALE PRICES OF RECENTLY SOLD PROPERTIES.
TAPE GARY ROBERGE 1256 you can always find information on what raw land is worth. You don't always have a good indication of what the view adds. So you have to go to the - enough sales that have views, that have similar amenities. Similar locations, similar size, similar topography -- and strip away all of that, and see what the difference is. :23
THE DIFFERENCE IS THE VALUE OF THE VIEW. TO HELP ASSESSORS QUANTIFY THIS, AND TO HELP EXPLAIN THE CONCEPT TO SOMETIMES BAFFLED PROPERTY OWNERS, ROBERGE'S COMPANY OFTEN PUTS TOGETHER WHAT HE CALLS A "VIEW MANUAL."
ROBERGE HOLDS UP THE TOWN OF THORNTON'S MANUAL. IT CONSISTS OF FIVE PAGES OF PHOTOGRAPHS OF THE VIEWS FROM ABOUT A DOZEN PROPERTIES IN TOWN. HE POINTS TO A PHOTO AT THE LOW END OF THE SCALE: A FAIRLY NARROW VIEW OF SOME TREES IN A DISTANCE. THE PHOTO IS IDENTIFIED BY A THREE DIGIT NUMBER -- WHAT ROBERGE CALLS THE "VIEW FACTOR. "
TAPE GARY ROBERGE so in this case it's 150, which really means one-point-five. So if your base land is 40-thousand, a lot with this view would have a value of 60-thousand, or one-point-five times that. :11
THE LAST PHOTO IN THE MANUAL IS A STUNNING, 180-DEGREE VIEW OF OPEN FIELDS THAT GIVE WAY TO UNOBSTRUCTED VIEWS OF DISTANT MOUNTAINS. THE VIEW FACTOR IS 600. SO IF A DEVELOPER COULD UPGRADE A 40-THOUSAND DOLLAR PROPERTY TO GIVE IT THAT VIEW, IT WOULD SUDDENLY BE WORTH TWO-HUNDRED-FORTY THOUSAND.
AND IN FACT, AN ASSESSOR WOULD ARGUE THAT RECENT SALES IN THORNTON WOULD CONFIRM THAT VALUE.
TAPE JEFF EAMES 439 properties that do have a view are more in demand. :03
THAT'S JEFF EAMES, OWNER OF "FORT MOUNTAIN LAND AND TIMBER COMPANY" IN EPSOM. EAMES CALLS A TIMBER CUT DESIGNED TO ENHANCE A PROPERTY'S VIEW A "VISTA CUT." HE SAYS EVERY NEW HAMPSHIRE DEVELOPER KNOWS ITS VALUE.
TAPE JEFF EAMES 630 we cut certain areas on higher ground to incorporate views, so that the landowners or the developer can maximize on that piece of property that he owns. He's trying to sell. :11
SOMETIMES, THE PURSUIT OF A VIEW CAN LEAD TO SOME ODD FINANCIAL TRANSACTIONS.
TAPE JEFF EAMES 830 We get involved with landowners who have negotiated vista cuts on other people's property. you know, they've made some kind of financial deal
with 'em. :10
OCCASIONALLY, AN UNWELCOME OFFER OF THAT KIND OF DEAL CAN CREATE FRICTION BETWEEN NEIGHBORS WHO HOLD DIFFERENT IDEAS OF THE TRUE WORTH OF A PIECE OF LAND.
TAPE SFX: PORTABLE TIMBER MILL
IAN HALM IS A FORESTER. RIGHT NOW HE'S MILLING PINE TREES ON HIS PROPERTY IN THORNTON, WHERE HE AND HIS FIANCE PLAN TO BUILD A POST AND BEAM HOME. HALM GREW UP IN FRANKLIN AND GRADUATED FROM U-N-H'S THOMPSON SCHOOL OF FORESTRY.
TAPE SFX: WALKING IN WOODS.
HALM ENJOYS LEADING VISITORS THROUGH THE WOODS TO THE RIDGE LINE ON THE BACK-SIDE OF HIS NEWLY PURCHASED 18-ACRE PROPERTY, WHICH LOOKS NORTH TOWARDS FRANCONIA.
TAPE IAN HALM 1023 on a clear day, it's not very clear right now, you can see franconia notch from here. And with the removal of very few trees you could get quite a view from here. And a lot of my friends always tell me when i take them out here that, wow, ian, you should build your house right here. :20
HALM DOESN'T WANT TO, FOR SEVERAL REASONS. THE SITE IS FAR FROM THE ROAD, THE NORTH FACING SLOPE WOULD OFFER LITTLE SOLAR RADIATION, THE TREES ARE VALUABLE FOR TIMBER AND WILDLIFE.
AS FOR THE VIEW, HALM ENJOYS WALKING OUT TO SEE IT. STILL, THERE'S NO QUESTION A HOME BUILT HERE WOULD BE VALUABLE.
TAPE IAN HALM 1238 oh, it would greatly affect the value of the house. It would increase it by quite a bit. And in this area they tax according to values that include views. And neighbors of mine on this road that i live on pay quite a bit in taxes because they have a beautiful view. :23
ONE DAY LAST WINTER WHILE HALM WAS MOVING LOGS, THE BUILDER OF THE 4-THOUSAND SQUARE FOOT HOUSE GOING UP NEXT DOOR CAME OVER TO INTRODUCE HIMSELF.
TAPE IAN HALM 1815 And then he told me that he would like a view cut through here, which i found quite shocking. That someone would just come up to you and ask you to cut, 4 or 5 acres of your property, so they could have a view... :16
THE BUILDER, WHO'S FROM SOUTHERN NEW HAMPSHIRE, DOESN'T PLAN TO LIVE IN THE NEW HOUSE -- HE PLANS TO SELL IT.
TAPE IAN HALM 1958 I was kind of in shock when he talked to me, so i did have any real good answers to him when he asked me about cutting this. But i think if he asked me today if i would cut the trees here i'd tell him that someday i will cut all those trees here, but not all at the same time. :16
HALM CONSIDERS HIMSELF A HOMESTEADER.
TAPE IAN HALM 2302: I plan to live at this site for the rest of my life. And i love where i work, and i love living here in the state, as long as i can continue to afford to do that, i will. :12
LIKE MANY PROPERTY OWNERS, HALM WORRIES ABOUT HIS PROPERTY TAXES CLIMBING EVER HIGHER. AVITAR'S GARY ROBERGE SAYS IT'S A REALISTIC FEAR.
TAPE GARY ROBERGE 3849 property value in new hamsphire is just going up. For people in new hampshire, i'm not sure everyone realizes how beautiful this state is and what it has to offer. :07
AND HOW MUCH SOMEONE FROM OUT-OF-STATE MAY BE WILLING TO PAY FOR A SMALL PIECE OF IT. ESPECIALLY IF IT HAS A NICE VIEW.
TAPE GARY ROBERGE 2611 And someone coming from a city is going to put a higher value on it, than the local person. And the local person can be priced right out of the market. :08
ESPECIALLY IF THEY HAVE TO PAY A HEFTY VIEW TAX.
BUT REMEMBER, YOU'RE NOT SUPPOSED TO CALL IT THAT.
FOR N-H-P-R NEWS, I'M DOUG MACPHERSON.
An “Equalization Programâ€? BAH! That’s what a 100% revaluation of towns and cities used to call a wholesale appraisal for assessment purposes. Now, in our lovely State of New Hampshire, I would suggest revaluation is distinctly “Unequalâ€.
A different perspective, if you will:
First, the overriding criterion for establishing real estate value is: AN AVERAGE OF COMPARABLE SALES OF LIKE PROPERTIES, taken from recent transactions in the geographic area or town. Other factors - age of the home and reconstruction cost less depreciation - are also valid in today’s world of real estate appraisal. Coupled with establishing a fair and equal land values, based on location, zoning, etc., that has always been, and should continue to be the absolute or default criteria when it comes to assessing property.
Now, a nice view has always contributed to that formula, in that persons interested in such a thing, would spend more money in a sale of real estate for that view. That DOES NOT provide license to amateurs like Gary Roberge and company to decide that this constitutes, in effect, a "view tax". Now, he says he doesn't agree with that premise, or even that a view tax exists. But in practice, he and members of his firm are actually giving the whole notion the utmost credence, using the code "VU" to describe an increase of up to 100% of the already established land price. Imagine… doubling the land value of one’s property simply because it has a view!! In a mountain range, all of the surrounding towns and corresponding real estate have views! Thus, according to Roberge’s logic, all land attached to this real estate should be doubled in value, regardless of comparable sales of said like properties.
This is absurd and putting the cart before the horse. The real estate sales in the aforementioned towns REFLECT factors such as views, waterfront values, etc. The view SHOULD NOT dictate the value, unless tested by the gold standard... the sales price of the property. As with some of our leaders in business today, Mr. Roberge and others have made huge and inappropriate assumptions and built their businesses around them. This is not only unethical and self-serving, but is extremely bad for the State of New Hampshire.
Now that we're heading into a down turn in real estate sales and values, would the likes of Roberge et al suddenly make adjustments accordingly downward? Probably not!! This has to be intercepted and changed before the whole tax system becomes corrupt... it's already the antithesis of an equalization program.