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vetting 04-26-2009 11:49 AM

Tax assessment went down 10% - need advice
 
I purchased a foreclosed duplex on 4/25/2008

It was originally listed at 170k, but I ended up purchasing it for 135k. The 2008 tax assessed value was 165k. I just got a notice of a assessment change down to 148k. A drop of 17k. Over the last year, I've completly gutted and renovated both kitchens and renovated them with premium materials. I've also done the same with one bedroom and 1 bath. I've also done a fair amount of work on the outside. I am also in the process of having a new roof, gutters, and fiber cement siding put on. If I plan on selling sometime in 2009 or 2010, would it be best if I object to the new value and had the assessor actually come out to value the property?

nap 04-26-2009 11:54 AM

what do you think it is worth?

If it is worth more now because of the remodel, it would be cutting your own throat. It is the proper thing to do though. We need all the money we can get.

vetting 04-26-2009 11:59 AM

I dont mind paying the extra taxes for a year or 2. I would rather have the house assessed value stay at what it was so that perceived value to the future buyer is higher.

nap 04-26-2009 12:01 PM

but he will be in for a big surprise if the sale price is much above the current assessed value.

btw; you did permit all your work, right?

vetting 04-26-2009 12:22 PM

The point is to keep the assessed value the same (165k) so that the sale price "can" be around that value instead of having to go over current value.

I pulled permits for most of the work. Not too much of the remodeling required permits for my area besides the wiring.

nap 04-26-2009 01:55 PM

Quote:

=vetting;265755]The point is to keep the assessed value the same (165k) so that the sale price "can" be around that value instead of having to go over current value.
you make the sale price whatever you want to agree to (as long as you can find a buyer willing to pay and a bank willing to loan, if needed).

Maybe I'm missing your point in all of this.

assessments are not binding to anybody except the assessor for taxation (and even that can be argued). When a bank loans money, they will require an appraisal. What the current assessment is has no bearing on the appraised value.

btw: the assessed value should have dropped to the purchase price ($135k) since an assessment is supposed to represent market value and if all the building could be sold for was 135, then the market value is 135 but due to the improvements, I would suspect it will increase drastically the next tax billing (that is one thing the permits do; alert the assessor to changes).

If you want, and believe the value to be greater, then call the assessor to reassess. It most likely will be greater than the $148 (based on what you have posted and presuming you did not over pay radically)

Ron6519 04-26-2009 02:02 PM

There is no correlation in the assessed value the local government places on the house and the price you sell it at. As a matter of fact, it's better if the assessed value is substantially reduced so the new homeowner doesn't see a large tax bill with the for sale sign.
The figure that is important is the appraised value, which indicates the homes value at the time of the appraisal.
That's the way it works on LI in NY.
Ron

Scuba_Dave 04-26-2009 08:09 PM

I've never asked to pay more taxes
Selling is a matter of appraised value
If the appraisal comes in low, you will have a hard time selling
If other houses in your area are selling for less, then your house value has decreased

They will be happy to raise your taxes
It will not mean your house is worth more

Leah Frances 04-26-2009 08:25 PM

We had a private appraiser appraise our house this fall for our re-finance - the appraised value went up 25K (not bad in a down market - and proof that I am actually getting something positive done). The private appraiser only had to report to us and our mortgage company.

At the same time, we protested our tax assessment because they over estimated the square footage of our house (long story). So our tax assessment actually went down.

At some point the city or county may do another assessment, but until then....:whistling2:

Termite 04-27-2009 08:05 AM

I'd just sit back and enjoy the low tax bill. I don't think that real estate agents, appraisers and buyers put much of any stake in the county's valuation of a home. The true value will be set by an actual appraisal, not a drive-by appraisal like the county does.

brokenknee 04-27-2009 12:04 PM

Quote:

Originally Posted by thekctermite (Post 266132)
I'd just sit back and enjoy the low tax bill. I don't think that real estate agents, appraisers and buyers put much of any stake in the county's valuation of a home. The true value will be set by an actual appraisal, not a drive-by appraisal like the county does.

This is true, I use to be an appraiser/realtor. Enjoy the lower taxes. :)

Bondo 04-29-2009 07:19 AM

Quote:

The point is to keep the assessed value the same (165k) so that the sale price "can" be around that value instead of having to go over current value.
Ayuh,... As noted above,... Assessed value has Nothing to do with Apraised value....
Enjoy the Lower tax rate as long as you can....

jerryh3 04-29-2009 07:22 AM

If you absolutely feel the need to pay higher taxes, you can always send the difference to me.

nap 04-29-2009 06:30 PM

Quote:

Originally Posted by brokenknee (Post 266252)
This is true, I use to be an appraiser/realtor. Enjoy the lower taxes. :)

Now come on. If you really were a RealtorŪ, you would know that RealtorŪ is capitalized.:whistling2:

brokenknee 04-29-2009 06:59 PM

Quote:

Originally Posted by nap (Post 267268)
Now come on. If you really were a RealtorŪ, you would know that RealtorŪ is capitalized.:whistling2:

thank you very much mr grammar police. :)
glad to see you didn't forget the r for the registered trademark.


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