Kenai Peninsula Assessors review property values and inspection challenges

The Kenai Peninsula Borough Board of Equalization convened on May 22, 2025, to discuss property assessments and valuation methods used by the borough's assessing department. The meeting highlighted the procedures for determining property values, including the use of a market-adjusted cost approach, which factors in property descriptions, quality, size, and features.

During the session, an appraiser presented two specific properties under review. The first property, a 5.05-acre parcel in the Homer non-city market area, had a noticed value of $230,700. The appraiser explained that the assessed value is derived from a combination of land value and improvements, based on a thorough analysis of recent land sales in the area. The property was inspected on April 11, 2025, but the interior inspection was denied by the homeowner, which led to a decrease in the property's value by $3,400 due to adjustments made from the exterior inspection.

The second property discussed was a 1,750 square foot home with a noticed value of $988,400. Similar to the first, the interior inspection was also denied, but the appraiser utilized MLS photos to gather necessary information for the assessment. The home is currently listed for sale at $1,290,000, and adjustments to the property record will be made for the next assessment cycle.

Board members raised questions regarding the inspection processes and the rationale behind certain valuation discounts, particularly concerning water and sewer services. The appraiser clarified that the discount applied to the larger property was based on its market area and typical valuation practices.

The meeting underscored the importance of accurate property assessments and the challenges faced when access to properties is restricted. The board's discussions will inform future assessments and ensure that property values remain fair and equitable within the Kenai Peninsula Borough.