Your home has a dirty little secret it is isn’t going to share with you; I am bringing the secret out into the light so you can benefit.
One thing that nobody does in any real estate market is fight city hall and the assessed value of the property. For a lot of people, they feel that the tax assessor’s office and the somewhat arbitrary values levied on homes lend credence to a home’s worth.
Here’s the deal – the assessed value of your home for tax purposes has no bearing on the appraised value of your home from the lender’s (or borrower’s) point of view.
None at all.
Let’s read that line one more time… “the assessed value of your home for tax purposes has no bearing on the appraised value of your home from the lender’s (or borrower’s) point of view.”
The company that originates a loan on a property may look at the assessed value, but in reality, they are going to look strictly at local comps – completed sales – to act as the harbinger of the value of a piece of real estate.
I know, some of you guys think that I must’ve bumped my head or something, but deep down inside, you know it’s true – when the market melted down in 2007-2008, was it due to a world-wide change in tax assessment strategy or rules?
It collapsed because the appraised value of homes for sale – and the mortgages on those properties – were no longer supported in the market.
…and that leads to one thing that you, as a homeowner, can use to save you thousands per year. Even better, it’s so simple, anybody can do it.
Take a copy of the county or city’s tax assessment on your property down to the courthouse and simply tell the clerk that you feel the assessed value is incorrect and you need to have the assessor’s office review the value and confirm the assessment.
Why does this work? Because your city or county cannot reliably assess every property in the jurisdiction, so they rely on formulas to arrive at the value of a given property. Over the years, these have a tendency to throw property values out of line. The realignment? In many cases, the sales value of similar properties in your area and a deeper look by the assessor’s office at your specific property. In other words, what many people feel they are getting every year when the tax assessment is mailed to them.
This actually works on both sides of the closing table, too, if you are buying or selling a home or even a commercial property. Investor’s won’t buy properties with inflated values, buyers don’t want to pay too much in taxes, and seller’s – the people who have actually been paying the taxes – certainly want to keep more money in their pocket.
Just as importantly, this works for commercial properties as well – in fact, we know of one medical office building in Savannah, Georgia that recently sold where the assessed value was 1.1 million dollars higher than the appraised value – and that is before the buyer corrected for vacancy. In that particular market, this amounted to a savings of over $50,000 annually.
So no matter whether you are a buyer, a seller, or an investor, take time this month to review where your property taxes are in relation to the real value of your assets and put a little money back in your pocket.
ABOUT OUR COMPANY: New Life Tax Resolution is built on the foundation of our Core Values, including commitment, trust and respect for our clients. Our goal is to provide every client with efficient, permanent relief from the stressful burden of tax debt. We don’t just want you to be free from tax debt, we want you to leave New Life Tax Resolution with the knowledge and tools you need to never find yourself in the same situation again. Call today and take action to regain control of your finances from the IRS. Ask for Patrick LeClaire 407-287-6638.