Can anyone explain current use?

[dognh]

Any good site for sniffing out NH foreclosures, perhaps even on land deals?

[Hepcat]

Thanks to all who posted. I am also torn as to "when" the best time to buy is; I have to agree with Valerie, I have noticed a lot of properties sitting on the market for a long time, but I don't see prices going too far below market value. I don't forsee anything improving before the fall elections, but beyond that I can't say.

I am noticing some developers who seem to have bought large tracks of land to subdivide with the intention of selling new construction packages, now offering land only; I suspect new construction sales have dried up in a lot of markets.

[WannaComeHome]

I am also torn as to "when" the best time to buy is; I have to agree with Valerie, I have noticed a lot of properties sitting on the market for a long time, but I don't see prices going too far below market value.

I don't think land goes down in price as much. Figure: if it's in current use, the taxes are pretty low, the seller isn't in as big a hurry to sell and get out from under it so it's ok if it sits longer until the market goes up again.

[Valerie C]

dognh, I subscribe to a weekly newspaper called The Registry Review that lists all foreclosures, sales, transfers, etc. (RDC NH Registry Review) If you'd rather not subscribe, there are a million websites that "guarantee the newest foreclosures" that you can sign up for. Best bet would be to ask a Realtor to pass along info to you--the foreclosures end up listed on MLS 95% of the time...

[dognh]

Originally Posted by Valerie C

dognh, I subscribe to a weekly newspaper called The Registry Review that lists all foreclosures, sales, transfers, etc. (RDC NH Registry Review) If you'd rather not subscribe, there are a million websites that "guarantee the newest foreclosures" that you can sign up for. Best bet would be to ask a Realtor to pass along info to you--the foreclosures end up listed on MLS 95% of the time...

thank you!

[dordway]

I cannot begin to explaint the whole current use systems, but can comment on your questions:

If land is "in current use" that means that the value placed on it for tax purposes is reduced, actually reduced quit a lot. For example, if you own 10 acres of land and its open market value and tax assessed value is $200,000 because it can be developed then your tax for that parcel would be 400 x rate per thousand for that Town so at $20/1000 = $4000 tax.

If the same parcel is "in current use" and it is "forest land" the current use valuke may be around $300 per acre or 10 x 300 = $3000 current use value. This value would be used for tax calculations as in the example above, 3 x rate per thouse for that Town, so at $20/100 = $60 tax.

As you can see this is a SUBSTANTIAL savings in tax. When any land that is "in currect use" changes use, that is to build a house and become a residential property the "change of use tax" is calculated as 10% of the appraised value at the time the use is changed so if the value of the land is $250,000 at the time the use is changed then the 'change of use tax" would be $25,000.

Current use can be tricky, because there are minimum sizes that different types of land can qualify. The most important is the "10 acre" minimum. I you have 10 acres in Current Use and want to only take 2 to build a house, you still must pay the change of use tax on all 10 acres because you must be able to keep 10 acres in curent use to get the benefit.

Feel free to contact me if you have additional questions. I can point you to a number o fplaces for more info and/or criteria and rules material.
Hope this helps.