By JOHN SIMMONDS
Hays Post
According to data from the Census Bureau, average house prices in Hays are significantly higher than communities with comparable median household income and/or population. The data, gathered from quickfacts.census.gov, illustrates what many Hays residents feel: property in Hays is more expensive that other, larger communities.
Though sale price is set by property owners, the Ellis County Appraiser Dean Denning, who is retiring at the end of 2013, told Hays Post his office generally appraises properties within 1%-2% of their sale prices.
Each property is appraised at market value, which is defined as the amount of money a well-informed buyer would pay and a well-informed seller would accept for property. The market value of each home is determined by evaluating the sale price of comparable properties in the area. The State of Kansas conducts monthly audits of the appraiser’s office to ensure the sale price of homes is less than 10% off from the amount it was appraised at.
Denning says housing prices in Hays are at a level that should be expected given all that Hays has to offer.
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Looking strictly at numbers can be misleading, Denning said, because age, condition, size, and location are just some of the factors that play a role in determining the market value of a property. He also said simply bringing prices down would be detrimental to the local economy. Denning pointed out Hays is a very unique market and hard to consider comparable to many communities, as it’s the largest shopping destination heading west until Denver, and acts as a kind of gateway for residents in western Kansas.
One person who believes property in Hays is very high is Aaron White. White, executive director of the Ellis County Coalition for Economic Development, plays a key role in bringing new businesses to Hays. He says the cost of land in Hays has prevented a number of businesses and developers from pursuing Hays as a venue for their expansion.
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One such example is Salina, where White has previously worked in economic development. White said prime real estate in Salina where Logan’s Steakhouse and other businesses were constructed was selling in the $6 to $7 per square foot range. Some land north of Interstate 70 in Hays is being listed by developers at $15 a square foot.
White said his office has access to a number of tools to help businesses offset high property costs in Hays. He said the asking prices for some ground is a great deal higher than the appraised value, adding if at least one land owner were to budge significantly on asking price, it could act as a catalyst for other owners to follow suit.