Property taxes (real estate, house prices, buy)

[janster100]

We are in the process of relocating to the area. We found a home that is new construction, complete and ready to move in. The original asking price was almost $750K, but we can get this for around $600K. The property valuation for taxes was set at around $800K. What happens if I buy this. Does the tax assessment change to the purchase price? If not, can I appeal?

[fidodido25]

Unfortunately, NO!

Taxation is based on State assessed value for the property.

[leighbhe]

In wake county property taxes are assessed every 8 years, we just had an assessment a year ago (or a year and half) and everyone saw a jump in their assessment. Some people were able to appeal that, but generally speaking, they don't change.

You are looking at new construction, and the best thing to do is to have your real estate agent (or you can do it) look at the assessed value of the home around the house you are considering purchasing. If the home you are looking at has a MUCH higher value, that may be something to talk to wake county about, but if they are all similar (as in price per square foot similar) then you just have to deal with it.

Leigh

[CHTransplant]

This is a frequent question, and a commonly misunderstood topic. Your tax valuation is relevant only in terms of how it relates to other similarly valued houses. It doesn't matter if it's $100 or $1,000,000, as long as its equitably set in relation to other similar homes - such that everyone is paying their fair share of the tax burden.

[annesg]

This is interesting to me b/c we paid $40k less than our tax valuation for our home. Not a single home of that same model had sold for that price in over a year--the 3 other homes of that model that had sold in the past 6 or so months were in the same range we paid (which is why we offered what we offered for the house). Makes me wonder if we'd have a shot of getting our tax bill reduced.

[CHTransplant]

Tax valuations are as of a certain date. If assessments were done a couple of years ago, and house prices have declined since, that would explain why you paid less than the tax value. Your challenge will be to establish that the value on the date of assessment was wrong - not that it doesn't match current values.