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Old 08-09-2009, 10:26 AM
 
204 posts, read 571,804 times
Reputation: 86

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So I'm doing some research on buying a home and come across property that is now selling at $70,000. What a great deal! Except the property appraiser has it appraised at $130,000!?

It turns out that the appraiser must value the property on what it was worth on the first of the year. $130,000 was the value on 1/1/2009.

But, come 1/1/2010, the next property tax bill should be appraised at the $70,000. It's not a foreclosure or anything other than an arms-length transaction for that particular type of property. If I buy in December, the property appraiser will have no choice but to value it at $70,000. I will then apply for a homestead exemption and just pay taxes on $20,000!

This sounds like a great idea, but I wanted to post it here to see if there is a flaw in the logic.

Property in question is a townhome.
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Old 08-09-2009, 10:50 AM
 
Location: Miami
6,853 posts, read 19,759,093 times
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As far as I know, because of the low prices out there because of short sales and foreclosures, counties are not going by their old rule, which is 2% of the sale price. What they are doing on these newly and cheaply sold places is they are putting the value of the home to what the neighborhood value is. So if the neighborhood value in 2010 is $70,000 then they will put that as your value, but if the value of your neighborhood is $130,000 that will be your price, not based on the sold price on these lower priced homes. Counties got to get their money somehow. I could be wrong, but I think this is what I heard is happening out there.
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Old 08-09-2009, 11:05 AM
 
2,497 posts, read 6,365,751 times
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Quote:
Originally Posted by CollegeGuy9 View Post
So I'm doing some research on buying a home and come across property that is now selling at $70,000. What a great deal! Except the property appraiser has it appraised at $130,000!?

It turns out that the appraiser must value the property on what it was worth on the first of the year. $130,000 was the value on 1/1/2009.

But, come 1/1/2010, the next property tax bill should be appraised at the $70,000. It's not a foreclosure or anything other than an arms-length transaction for that particular type of property. If I buy in December, the property appraiser will have no choice but to value it at $70,000. I will then apply for a homestead exemption and just pay taxes on $20,000!

This sounds like a great idea, but I wanted to post it here to see if there is a flaw in the logic.

Property in question is a townhome.
You will pay a tax on assessed value not foreclosure price.I am going thru this on foreclosure ,which as crazy as it sounds because of age and family in CT.We are purchasing a tiny home 702 sq ft home with garage for $105,000.It is on the books for $173,000 with taxes of $3680.This is where it will sit according to assessor unless we appeal,we will but do not expect appraisal to go below $130-135,000 if we are lucky.Assessor said foreclosure has nothing to do with value.
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Old 08-09-2009, 11:32 AM
 
204 posts, read 571,804 times
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It's not a foreclosure. It's a townhome community with a dozen or so properties for sale at around 70k.
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Old 08-09-2009, 12:17 PM
 
3,043 posts, read 6,839,806 times
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Collegeguy, I think your reasoning is sound.

I've also heard, at least in Broward, that Lori Parish (our appraiser, god bless her soul), after first saying they wouldn't be using foreclosure value to determine assessed value, has done a 180, and *will* be using it.
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Old 08-09-2009, 12:25 PM
 
204 posts, read 571,804 times
Reputation: 86
The kicker is when the housing market rebounds, SOH will lock the assessed value at $70,000 + 3% per annum.
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Old 08-09-2009, 01:11 PM
 
3,043 posts, read 6,839,806 times
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Quote:
Originally Posted by CollegeGuy9 View Post
The kicker is when the housing market rebounds, SOH will lock the assessed value at $70,000 + 3% per annum.

Agreed. Also, as a prior homeowner I'm able to have a further deduction from portability that allows the difference in my current SOH value vs. its just value.
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