Condo's location determines its value

Q: My newest tax assessment values my studio condo in downtown Seattle at more than I think I could sell it for.

The studios in my building have no parking, no washer/dryer, no view, no air-conditioning, no gas range, no venting for range/oven, no fireplace and most have laminate counters, vinyl flooring, carpeting and low ceilings.

Are all these things considered in figuring their value for tax purposes?

A: No they're not, says Michelle Hagen, who oversees condo assessments for the King County Department of Assessments. Hagen says someone from her department "has been in virtually every condo at some point," but every amenity they see doesn't play a role in deciding how much each property is worth for tax purposes.

For example, assessors pay no attention to appliances. "Those things are too easily replaced," Hagen said. Nor does having a fireplace — or a lack of one — play a role.

Rather, the assessor's office bases it calculations primarily on the building's location, age and condition, plus the unit's square footage and its location within the building. Sales of similar units in similar buildings and neighborhoods are factored in, too.

By that measure, a 10th-floor view unit would have more in common, valuewise, with a 10th-floor view unit in a similar building than it would with a viewless first-floor unit in the same building.

"The floor and the view make a difference because they make a difference to buyers," Hagen explained.

To learn more about how assessments are figured, visit the King County Department of Assessments Web site and look at its area reports. All sales are listed, as are the formulas. Click on www.metrokc.gov/assessor and check out the area reports.

Q: A contractor placed a lien on our home when he built our deck. He removed it when the deck was finished and we paid him in full. What effect might this short-term lien have on our credit rating?

A: Many readers may not be familiar with this lien scenario, so let's start with a primer. This type of lien, commonly called a mechanic's lien, is standard business practice for many remodeling contractors; it's their way of making sure you'll pay up. If you don't, they have a claim on your property.

Homeowners want any mechanic's lien removed promptly once the project and payment are finished. Indeed, homeowners should insist their written agreement with their contractor include a lien release. The state Department of Labor and Industries, which oversees contractors, recommends this.

Now to your question. All three credit-reporting agencies — Experian, Equifax and TransUnion — sift public documents for state and federal tax liens. Spokesmen for all say tax liens have a serious negative impact on a borrower's credit rating, an impact that can last for years.

But no credit-reporting agency looks for mechanic's liens, so they're not reflected on credit reports.

As Rod Griffin, spokesman for Experian explained: "A mechanic's lien is really an insurance policy that the contractor holds. It's not a debt the consumer owes, as a tax lien to the government would be, so it's not a derogatory piece of information."

One caveat: Some years ago, credit-reporting agencies did capture mechanic's liens. Therefore it's possible an old one could still turn up on a credit report.

That's why it's a good idea for anyone who had one of these liens in the past to check their reports. The credit-reporting agencies all provide free copies of your report — and it's important to review all three because they're not the same.

Details on how to get the reports are on the agencies' Web sites.

Q: I evicted a tenant and got a judgment from the court for over $3,000. How can I collect without going through a collection agency?

A: It sounds like the judgment probably was awarded to you in small-claims court. That court hears monetary-based cases that have a recoverable limit of $4,000. Generally the court gives the losing party a time limit, often 30 days, to pay up.

If that doesn't happen, the burden of collecting falls to the winning party; small-claims court will not collect the amount.

The Young Lawyers Division of the King County Bar Association has written a detailed small-claims handbook that explains how this court process works and how you can collect a judgment. It even includes the forms you need to pursue your case and claim your money. You can find the handbook at www.kcba.org. It's free.

King County District Court's Web page also has information about court processes at www.metrokc.gov/kcdc/smclhome.htm.

In a nutshell, you can collect by garnishing the losing party's bank account or salary. Alternately you can place liens against cars, boats or real estate.

Home Forum answers readers' real-estate questions. Send questions to Home Forum, Seattle Times, P.O. Box 1845, Seattle, WA 98111, or call 206-464-8510 to leave a question on a recorded line. The e-mail address is erhodes@seattletimes.com. Sorry, no personal replies. More columns at www.seattletimes.com/columnists.