The coming wave of tax appeals
If we can take the Wake County Revenue Department’s web site at face value, every homeowner in this glorious patch of North Carolina has a good case for appealing his or her property tax assessment.
I had lunch last week with a buddy who, like me, has his home up for sale. We discovered that our experiences have been almost identical: A discouragingly small number of prospective buyers, and no offers (or even serious expressions of interest) despite repeated price drops. At some point in the conversation I noted that the recent county-wide reappraisal of real estate had been done at the very peak of the housing market — which has now contracted dramatically. “We’re paying taxes on property values we could only dream of,” I said. (Yep, I ended my sentence with a preposition. I write better than I speak.)
A few days later, still curious about the matter, I went to the county revenue department’s site and found this mention about appeals:
If you think the appraised value is more than you would reasonably get if you sold your home, you should consider an appeal (the appraiser is required to determine “fair market value”). Keep in mind that we are living in a desirable area with high growth rates, so the change from the last revaluation may be significant.
If you can document damage or factors that may decrease the value, consider an appeal.
I don’t just think the appraised value of my home is more than I’d get if I sold it; I know it is. My home is appraised at $335,000, but even at a listed price of $299,000 I can barely get anyone in to look at it. That’s the market’s way of telling me the appraisal is laughably high. It’s even worse for my neighbor, who just three months ago paid $310,000 for his house — which the revenue department promptly valued at $370,000. (My guess is that his tax payment is handled by his lender, and he doesn’t know his pocket’s being picked.)
It seems to me that tax appraisals have become completely detached from actual market values. And considering that this market reversal is a correction, not a temporary downturn, the revenue department is facing a wave of appeals — assuming it’s serious about that “fair market value” thing.
November 12th, 2008 at 11:37 am
Yup, laughable appraisal. Don’t count on any help from an appeal. We appealed and got shot down. I don’t know what these folks are smoking, but it can’t be anything legal to get these kinds of hallucinations. To top it off we have 4 years until they reappraise our property.
I am constantly amazed at this state (and yes, I’m not from around here). Everywhere else I have lived, my wife has lived, or my relatives have lived (basically everyone I’ve asked), has reappraisals every year. Yup, annually. No surprises every eight years, or four under the new law. Adjustments can be made that take into account market changes. All very logical. Maybe that last explains the problem.
November 12th, 2008 at 1:31 pm
I sympathize with anyone who is saddled with a big house trying to sell it.
I got a real estate broker’s license as soon as I turned 21–(just to have one)–but never really used it except for a brief stint.
Like all professions which involve selling something, you are forced to engaged in more than a little BS.
One tip is to make sure the kitchen is in tip-top condition.
Also, do something interesting with the bathrooms like displaying some exotic designer towels, great soaps, etc….
And always keep some aroma stick diffusers in the house which continually give off great fragrance throughout the place.
Those small things often change the minds of prospective buyers.
You have to “sell the sizzle”, not just the “steak”. LOL!
Finally, I do hope that those people who are not married and raising a family understand that buying a house does not provide the cachet it once did when most of us were growing up.
It’s often a better deal to lease or rent a house, townhouse, or apartment.
It’s a different world now, people!
November 12th, 2008 at 7:53 pm
I’d feel sorry for you guys but hell, I live in Durham, our reappraisal was a NIGHTMARE. although the cool factor of living in Durham is great the incompetence of the city government has continued to amaze me for over 20 years.
November 12th, 2008 at 10:38 pm
Doing an appraisal every year would cost you MORE money in taxes. It is VERY expenisve for the county to do a re-appraisal. Be careful what you wish for.
Also, keep in mind the appraisers were working the past 3 years on these re-appraisals - when the market was good.
November 13th, 2008 at 10:14 am
Actually Meghan, my taxes were lower in Arizona and it took 3 years for an appraiser in Wake County to do what an appraiser in Pima County did in one. Yikes!