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Dear Steve,
I recently learned that the neighbor across the
street is a registered sex offender. But the county
tax appraisal district has told me this isn't
a valid reason to protest my property tax value.
Two Realtors I know say that's wrong and that
at least 65 percent of all homebuyers have children
and that any families would likely pass on my
home due to the offender. I plan to protest. Any
information you have on this subject would be
greatly appreciated.
-- Keith
Dear Keith,
Studies seem to suggest that you're right about the offender's impact on local property values. A 2002 Wright State
University study concluded that homes within one-tenth of a mile of a registered sex offender sold for an average of
17.4 percent less than comparable houses elsewhere. It also noted that homes one-tenth to two-tenths of a mile away
sold for 10.2 percent less and homes two-tenths to three-tenths of a mile sold for 9.3 percent less.
A 2006 Columbia University study, on the other hand, yielded more modest results. It showed homes
within one-tenth of a mile of an offender sold for only 4 percent less (an average of $5,500) while homes outside
that radius showed no decline. However, it did note that homes located next door to an offender sold for about 12
percent less.
While an increasing number of citizens are raising this issue with their assessment-appeal boards,
there's no indication that tax districts are cutting homeowners any slack on this -- at least not yet.
Earlier this year, a nationally publicized story in Southbury, Conn., spotlighted two dozen homeowners
who were asking the town to reduce their property tax assessments by up to 17 percent due to a sex offender's presence.
The group argued that the offender-in-residence had lowered the marketability of their homes. Thus far, no resolution
has been announced.
Most taxing authorities, I'm guessing, don't want to set a blanket precedent that would further reduce
their districts' tax revenue, particularly in this housing downturn. But some of them, I also suspect, are quietly
adjusting rates on a case-by-case basis as they weigh the sex-offender factor.
Another pressing problem for you
may be the ethical quandary you'd face if you
sell your home while the offender is still across
the street. (In most states, sellers are not required
to disclose the nearby presence of a sex offender.)
This could put you in the position of not disclosing
the offender's presence to protect your family's
home investment while allowing a family with young
children to locate there unawares.
The National Association of Realtors' position is that police departments and the national sex
offender registry, not real estate agents, should be sources for sex-offender data, unless local or state laws
supersede that opinion. But, I must add, it is the ethical obligation of the agent -- and in many cases, the
legal obligation -- to honestly answer any questions about whether sex offenders live in the neighborhood.
Before getting up in arms, first make sure the registered offender is actually still living at
the address. Some states are slower than others to update their registries. In fact, there have been instances
of homes getting vandalized or their occupants harassed well after offenders have quietly moved away from
those addresses.
Homebuyers and buyers' agents alike
should always check the Dru Sjodin National Sex
Offender Public Registry, www.nsopr.gov,
as part of their due diligence.
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