REAL ESTATE TAX. Assessments and how they relate to your real estate tax.
October 18th, 2008 by admin
QUESTION: WHAT IS A REAL ESTATE TAX? ANSWER: A FEE LEVIED BY GOVERNMENT AGAINST PROPERTY OWNERS.
* * * * ATTENTION ALL PROPERTY OWNERS * * * *
- QUESTION: What is a real estate tax?
- ANSWER: Fee levied by government against property owners.
DO YOU KNOW WHAT YOUR REAL ESTATE ASSESSMENT IS???
DO YOU KNOW THAT YOU CAN ASK FOR A REASSESSMENT??
In November 2007, I wrote a post to my ActiveRain blog about property assessments. The response was not overwhelming. But, being the stubborn old coot that I am, I’m writing it again.
For real estate agents and brokers who market to past buyers, send them a letter with the name and address of the tax assessment office for their home. This may be the best piece of marketing material you can send a former buyer client. If they are successful in having their tax assessment reduced, they will save real money and remember that the advice came from their real estate agent.
EXAMPLE:
| Tax Year | Total Tax Value | Land Value | Improvement |
| 2008 | 425,000 | 250,000 | 175,000 |
| 2007 | 510,000 | 310,000 | 200,000 |
| 2006 | 480,000 | 300,000 | 180,000 |
ASK YOUR COUNTY GOVERNMENT FOR A REAL ESTATE ASSESSMENT.
FACT: In many geographical areas, real estate values have fallen significantly in the past 24 months.
FACT: Some local governments do not reassess every year. Some local governments reassess every 3 years or so. If your tax assessment was over a year ago, it may be high.
FACT: Local governments are losing money because most of their budget is funded through real estate taxes.
FACT: Local governments have no incentive to reassess properties in a declining real estate market.
FACT: Citizens can be pro-active in getting property assessments lowered.
FACT: Many state and local governments must, by law, balance their budget.
FACT: Real estate taxes and assessments are determined by local governments.
FACT: Citizens can exert pressure on local governments to trim spending to balance their budgets and not merely tax their property owners to pay for their spending.
Homeowners who purchased a home in the past three years may be able to obtain a market valuation from their Buyers Agent.
Real estate agents may wish to contact former buyer clients and suggest that they ask for a reassessment of their property. You can’t increase the value of their property but you may help them lower their monthly/annual tax payment. Most home owners are paying their annual real estate taxes through an escrow account with their mortgage lender. As the tax bills are sent to the mortgage company, the escrow will be adjusted downward and refunds and/or result in lower monthly payments.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.
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