Question to the real estate agents on home value (Smithfield: sales, house)

[NC_native74]

Hey y'all!

I just bought a home in the area that was originally priced at $215,000 with a tax value of almost $204,000 for about $30K less than the original price. Since my TV is higher than what I paid, is it possible to get the TV lowered, i.e. making my property tax less? Thanks!

[MikeJaquish]

Originally Posted by NC_native74

Hey y'all!

I just bought a home in the area that was originally priced at $215,000 with a tax value of almost $204,000 for about $30K less than the original price. Since my TV is higher than what I paid, is it possible to get the TV lowered, i.e. making my property tax less? Thanks!

I think not. Deadline for appeal is well past us. It should have been appealed when it was re-assessed.

A lot of folks think an inflated tax vaue adds value to the home. That attitude is a real trap for Buyers.
All inflated tax value does is add to the tax bill. At least you didn't pay tax value for the home.

[NC_native74]

Originally Posted by MikeJaquish

I think not. Deadline for appeal is well past us. It should have been appealed when it was re-assessed.

A lot of folks think an inflated tax vaue adds value to the home. That attitude is a real trap for Buyers.
All inflated tax value does is add to the tax bill. At least you didn't pay tax value for the home.

This house is in Johnston County, I was trying to find that same information on their website but not having any luck. In the case of this house, I was lucky in that it sat around for a few months and the seller was motivated...when the market turns around, this house should be worth closer to it's original market value

[MikeJaquish]

Originally Posted by NC_native74

This house is in Johnston County, I was trying to find that same information on their website but not having any luck. In the case of this house, I was lucky in that it sat around for a few months and the seller was motivated...when the market turns around, this house should be worth closer to it's original market value

Talk to the tax folks in Smithfield. They will give you the scoop.
I still think you are stuck, but would be delighted to hear differently.

[MammaLakn]

We bought for $307K (orig $325K) and our tax value is $323K.

We contacted Wake county and they told us that we were welcome to appeal but it would probably be denied since the difference is less than 10% I *think* he said that within 15% of an appraisal/purchase price is considered accurate by the county.

[VickiR]

Originally Posted by MammaLakn

We bought for $307K (orig $325K) and our tax value is $323K.

We contacted Wake county and they told us that we were welcome to appeal but it would probably be denied since the difference is less than 10% I *think* he said that within 15% of an appraisal/purchase price is considered accurate by the county.

I recently had clients that did the same thing...called Wake County and were told the same thing HOWEVER, Wake County did reduce their tax value to the sales price they paid at closing.

However, the OP was asking about Johnston County?

Vicki

[NC_native74]

Originally Posted by VickiR

I recently had clients that did the same thing...called Wake County and were told the same thing HOWEVER, Wake County did reduce their tax value to the sales price they paid at closing.

However, the OP was asking about Johnston County?

Vicki

Correct on Johnston County...and I'd be content to settle for that, reducing it to what I'm paying. My closing date is still about 3 weeks off.

[coltank]

Although it could be beneficial to have a higher tax value, if you ever consider getting a HELOC, or if you re-sell before the next revaluation.

[MikeJaquish]

Originally Posted by coltank

Although it could be beneficial to have a higher tax value, if you ever consider getting a HELOC, or if you re-sell before the next revaluation.

Tax value is not relevant in either situation. I understand sellers trying to milk an overassessment for a higher sales price. Hopefully the Buyer has a better agent who knows that tax value is not relevant.
If the Seller didn't appeal and just let an overassessment ride, the sales price likely should be LOWER, since the new owner will be stuck with an oversized tax bill for at least 8 years.

Imagine overborrowing on a HELOC because someone at a bank was dense enough to accept tax value...
And then being underwater if you want to sell.
A very possible situation, with the number of homes that were overassessed 8% to 12% in Wake County.