Anbody successful with tax reassessments? (Fort Myers, Lee: sales, real estate, oceanfront)

[RichardZ]

After looking with amazement at the rock bottom real estate prices in Fort Myers (and surely other areas of the US as well), I then noticed the real estate taxes. $20,000 homes with annual taxes of over 10% of the price. Some over 15% of the price. Is there any hope to get these very unfair tax rates reassessed? I want to buy a dump, then redesign it to my needs so I have a custom built house for a reasonable amount. The real estate taxes are the stumbling block. In most places they are 1-2% of the value of the house. I don't mind paying more than that but not 10 times more! Is there any hope for a reassessment? That way I don't have an annual tax on my improvements. And do builders' permits tend to involve much bureaucracy? It sure would be nice to do most of the improvements or renovations quietly.

[Echobelly]

Just bought a house in Lee County. Be prepared for lots of bureaucracy! Took 3 weeks for the building permits to be granted. Don't even think of doing the work quietly yourself. A friend of mine did this (he's a contractor, but not licensed in FL), and when he needed to sell his house, they made him rip open walls and tear half of it out because it hadn't been inspected. Also, be aware of what I'm told is a new rule here, that if the improvements cost more than 30% of the value of the house (just storm proof windows can cost this), the whole house needs to be brought up to current code. This means it has to be 20' above sea level. Luckily, I made it by 6", otherwise, the house would have been a tear down. Beware of private roads, major head-ache. Contact me directly if you have any questions.

[imagardener]

I t sounds like you haven't bought yet so you can see what the current taxes are before buying. I haven't seen any taxes that are 10% of sale value, that would be crazy unless you are looking at an oceanfront lot that has been grandfathered-in with homestead. (OK I re-read your post and you apparently HAVE seen $2000 taxes on a $20,000 property. That is crazy-don't buy it).

Obviously in that case the new assessment would go up but not to 10% of actual value.

We are currently appealing our assessment which we think is maybe 15% too high. Did the homework online to see what neighbor assessments are. Today we answered questions like:are there two bowls in the master bath, is the shower separate from tub. Funny way to value. Didn't ask whether there was marble or just tile (no, no marble lol).

If you do upgrades you will get a new assessment but not a huge increase unless you double the value obviously. Talk to the people in the assessment office and ask these questions. It's their job to tell you whats what.

[RichardZ]

> Don't even think of doing the work quietly yourself. A friend of mine did this (he's a contractor, but not licensed in FL), and when he needed to sell his house, they made him rip open walls and tear half of it out because it hadn't been inspected.

Was that for simple renovations (paint & drywall) or electrical and plumbing? Many people do interior renovations without permits but obviously I intend to do a good job, 100% within code. I'm wondering what were the inspections that were needed? Obviously there is much greater risk when something changes hands. I need to remember that as sooner or later its going to be sold.

> Also, be aware of what I'm told is a new rule here, that if the improvements cost more than 30% of the value of the house (just storm proof windows can cost this), the whole house needs to be brought up to current code. This means it has to be 20' above sea level. Luckily, I made it by 6", otherwise, the house would have been a tear down.

The 30% item is something unknown to me. I wonder how they estimate the value of the work? But the bills? Can a Canadian citizen work on their house or would that be interpreted by the IRS or immigration as labor I wonder? I can just see myself tip toeing in with my supplies at 3am every night surreptitiously working away on my self imposed night shift!

And for the 20' rule, that would require a require a complete teardown right? Then it needs to be jacked up on stilts? Is that really what they expect? To have a coastline of stilt houses? You'd think that design would be more vulnerable to wind than if it was anchored to a foundation. But I guess once you're away from the coast a bit water is more of a concern.

So obviously its important to spend very little on the renovation which means you need to work very efficiently. Or very quietly....lol.

> Beware of private roads, major head-ache.

Because of property lines not accurately noted from the past?

[RichardZ]

The news of the tax assessments is great. Very hopeful. They are assessed each year in January apparently so that should be taken into consideration. Also apparently in some localities the water and sewage is combined with the real estate tax which would inflate it a lot or there could be back taxes owing. The problem with low end properties is that there is so little money to be made from them so the sales agents don't spend a lot of time checking for accuracy.

[FLBob]

People tend to forget that not all of the property tax is ad valorem; or based on the property value. There is a good chunk that will be for things like trash removal, storm water management,mosquito control, and special assessments. These components of the property tax bill will be the same regardless of the value of the property. On lower valued properties this component of the tax bill may be over 50% of the total tax bill. So a reduction in property value will not yield a comparable reduction in the tax bill.

[RichardZ]

Originally Posted by FLBob

People tend to forget that not all of the property tax is ad valorem; or based on the property value. There is a good chunk that will be for things like trash removal, storm water management,mosquito control, and special assessments. These components of the property tax bill will be the same regardless of the value of the property. On lower valued properties this component of the tax bill may be over 50% of the total tax bill. So a reduction in property value will not yield a comparable reduction in the tax bill.

Wow - You make some very valid points!

[Echobelly]

Originally Posted by RichardZ

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And for the 20' rule, that would require a require a complete teardown right? Then it needs to be jacked up on stilts? Is that really what they expect? To have a coastline of stilt houses? You'd think that design would be more vulnerable to wind than if it was anchored to a foundation. But I guess once you're away from the coast a bit water is more of a concern.

So obviously its important to spend very little on the renovation which means you need to work very efficiently. Or very quietly....lol.

> Beware of private roads, major head-ache.

Because of property lines not accurately noted from the past?

From what I can figure out, insurance companies don't want very expensive properties built in flood planes, so if you are increasing the value of the house by more than 30%, the whole house needs to brought up to code. You'd think realtors would mention this. Even our real estate lawyer didn't. We made it by the skin of our teeth.
As for private roads, if there isn't a "Private Road Maintenance Agreement" in place, no bank will mortgage the property. It's a fairly recent Fannie May requirement. So unless it's a gated community with a homeowners assoc., it's unlikely there's anything filed as to how the road will be maintained. I posted about this issue last summer, you can find it with a search.

[RichardZ]

Real Estate is so much more peaceful without insurance and banks involved!