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Old 11-24-2006, 04:49 AM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 10,225,104 times
Reputation: 925

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Say someone buys a house that needs a little TLC for $50k. How much of that would be assessed into property taxes? My dad says usually a little less than what the house sells for. Ok now say you spend $5k doing the TLC, how much will this increase the resell value? The assessed value? Now say you spend another $5k remodeling, perhaps adding another bedroom and bathroom, finishing the basement or attic, what would that add? Would they assess it equal to what it cost you to remodel, repair, renovate the house?
I ask this because I dont want the city to over assess the value and make someone pay way too much taxes!
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Old 11-24-2006, 02:41 PM
 
Location: Bothell, Washington
449 posts, read 75,663 times
Reputation: 187
That's a tough question. If you ask a realtor or appraiser they will tell you that certain upgrades will have an effect on the value, other will not. Kitchen updates are high on the list of good return on investment for example, but doubling the size of a home, making it the largest home on the street will tend to not pay off well.

The city/county will assess value based on the addition you put on the house. This is determined based on the sq. ft. of the addition and the formula they use to assess homes. If the housing market is hot in your area, the value of the home will be higher than assessed. If you are staying in the home and not "flipping" the house, over time the value will be worth the upgrades, not to mention the value of living in a home that is updated.

Updating things on the inside, out of the view of the assessors should not effect the assessed value, but will the resale value.

Find out for your area what upgrades are not worth doing. For example, of you live in Nome Alaska, an outdoor pool would not be the brightest idea most likely.
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Old 02-23-2007, 06:29 PM
 
Location: Central Jersey
3,037 posts, read 8,069,288 times
Reputation: 1707
It's always been said that kitchens and bathrooms give the best return. Bottom line is I think in most cases if you apply for a building permit (which will require an inspector comming into your home to inspect the work) and the improvement is substantial your taxes will increase. I also believe that different towns / cities assess these improvements differently. I agrre with dufferz, how long do you plan on staying will also have an effect!
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Old 02-25-2007, 01:17 PM
 
Location: Deep In The Heat Of Texas
2,640 posts, read 313,683 times
Reputation: 700
I lucked out when I had some improvements done to mine. I had a garage, tornado cellar, storage shed, and new closets built and it took years before the tax appraisers ever raised my taxes. I didn't complain.
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Old 03-03-2007, 11:42 PM
 
Location: Spots Wyoming
17,951 posts, read 22,745,702 times
Reputation: 10984
Quote:
Originally Posted by exhdo1 View Post
It's always been said that kitchens and bathrooms give the best return. Bottom line is I think in most cases if you apply for a building permit (which will require an inspector comming into your home to inspect the work) and the improvement is substantial your taxes will increase. I also believe that different towns / cities assess these improvements differently. I agrre with dufferz, how long do you plan on staying will also have an effect!
Right. Here's how it works, but remember, it differs in different counties and states. Where I live, you have to get a building permit if you are going to make a change that costs more then $1500. You obtain the building permit at a % of what the improvement is going to cost. Say your adding just a $1500 improvement, it will be only x number of dollars. If you make a $3000 improvement, the building permit will be higher.

When the project is complete, the building department signs off on it and they send a copy of it to the court house to be put in your package for your house. When it get's reviewed, value goes up, taxes go up.

But a person can make a lot of minor improvements to the home without anybody saying a thing. Just can't add outside structures or add sq footage without getting caught. haha
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Old 03-06-2007, 07:50 AM
 
Location: Central Jersey
3,037 posts, read 8,069,288 times
Reputation: 1707
Quote:
Originally Posted by jgussler View Post
Right. Here's how it works, but remember, it differs in different counties and states. Where I live, you have to get a building permit if you are going to make a change that costs more then $1500. You obtain the building permit at a % of what the improvement is going to cost. Say your adding just a $1500 improvement, it will be only x number of dollars. If you make a $3000 improvement, the building permit will be higher.

When the project is complete, the building department signs off on it and they send a copy of it to the court house to be put in your package for your house. When it get's reviewed, value goes up, taxes go up.

But a person can make a lot of minor improvements to the home without anybody saying a thing. Just can't add outside structures or add sq footage without getting caught. haha
What many people don't realize here in NJ is that they do repairs / improvements on their home i.e. new heating / ac system, renovate a kitchen, install a shed, add a deck or perhaps finish a basement and think their going to get away with it. What happens often is when it comes time to sell the town will come in for an inspection and to give the new owners a certificate of occupancy. If you have made changes to your home without applying for permits you open yourself up for a large headache when it comes time to sell. The most extreme case I have heard was a family in Manalapan NJ that was forced to remove all the sheetrock from the walls of their finished basement (which they didn't get a permit to do) so the inspector could inspect the framing, plumbing and electrical work. They then had to apply for the permits and I believe they were assessed a fine. I also heard that the homeowner got off on the wrong foot with the township when they came to inspect for the original sale and that might have caused him more grief! I've done numerous improvements on my home and always apply for a permit. I don't want any undue problems down the road. The inspector in my town is a grumpy guy (always complains he's overworked) but I always yes sir and no sir him just to keep things calm!
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Old 03-06-2007, 05:33 PM
 
3,020 posts, read 16,582,297 times
Reputation: 2439
Yup, jgussler and exhdo1 are both right on. Prepare to get raped.

Most places will tag you as much as they can. Better understand the rules when doing it under the table. Can be done, some places extremely risky.

Not all locations will have certificate of occupancy. You have to know a lot of the ground rules before even thinking about a house. What is that state like, what is that town, county or whoever governs like?

In SE Ohio it varies widely by county. Some counties have almost no rules. You can do what you please, if is legal by default. Assessor simply eyeballs the property every so often, a number of years. Some have mild systems of paper, more a declaration system, all for a little extra money. May or may not inspect work.

Other states / places you are talking a paperwork jungle. You get raped, no matter what you do. It is all a matter of degree.

Just remember in the locations that have certificate of occupancy, if they pull your paper thingee, they can throw you out of your own house. It can become real nasty fast.

Basically you need permission to live in your own house.
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Old 03-07-2007, 07:16 AM
 
Location: STL
1,093 posts, read 2,746,200 times
Reputation: 547
I had always been told that you can assume property taxes are about 1% of the selling price of the home. Maybe that's just in my area.
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Old 03-07-2007, 09:29 AM
 
Location: Waupun, Wisconsin
323 posts, read 1,411,704 times
Reputation: 115
Quote:
Originally Posted by poprocksncoke View Post
I had always been told that you can assume property taxes are about 1% of the selling price of the home. Maybe that's just in my area.
Definitely regional! We're in the process of moving from a place with a slightly higher rate (1.3%) to one with a *much* higher rate (2.0%)
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Old 03-07-2007, 01:23 PM
 
Location: STL
1,093 posts, read 2,746,200 times
Reputation: 547
Quote:
Originally Posted by escapetacoma View Post
Definitely regional! We're in the process of moving from a place with a slightly higher rate (1.3%) to one with a *much* higher rate (2.0%)
Wow.
I guess it is a better deal here..haha.
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