In our recent office newsletter we devoted a full page on the gap we’re finding in taxable market values as determined by the county assessor versus actual market value. I recently worked with a buyer who was contacted by our local assessor’s office about his home purchase. They were questioning the purchase price because it was $17,000 less (9%) than the taxable value.
He was really caught off guard by their questions and he called me right away to find out why they had contacted him. After a conversation with the county assessor’s office I was able to explain to him why they were asking the questions they did, and his concerns were relaxed.
Unfortunately, I think the county valuations are continuing an upward trend, whereas our values are flat or decreasing. Historically, the tax basis market values were typically 5-10% lower than the actual home value. That’s definitely changed and we’re finding that the taxable value is now exceeding the actual home sale value by the same margin (or higher).
In our newsletter we provided, what I hope will be helpful info for homeowners who may want to argue the county’s tax valuation. We received the information from the Minnesota Association of Realtors. It’s a step-by-step process that tax payers can use to dispute the value as determined by the county.
He was really caught off guard by their questions and he called me right away to find out why they had contacted him. After a conversation with the county assessor’s office I was able to explain to him why they were asking the questions they did, and his concerns were relaxed.
Unfortunately, I think the county valuations are continuing an upward trend, whereas our values are flat or decreasing. Historically, the tax basis market values were typically 5-10% lower than the actual home value. That’s definitely changed and we’re finding that the taxable value is now exceeding the actual home sale value by the same margin (or higher).
In our newsletter we provided, what I hope will be helpful info for homeowners who may want to argue the county’s tax valuation. We received the information from the Minnesota Association of Realtors. It’s a step-by-step process that tax payers can use to dispute the value as determined by the county.
Last year I was contacted by three clients who wanted my help in determining a realistic current market valuation of their home just so they could go to the county with comparables to challenge their tax valuations. I suspect that number will at least triple this year as the market has continued its trend.
Are these trends common in your market? Have homeowners been successful in challenging the tax valuation? It’ll be interesting to see how this unfolds, as more sellers are selling short, or under distressed circumstances.
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