Southwest Florida Real-Estate Prediction

[jodyj1622]

Hi msms and loves2read,
Thanks for responding to my question. From what I can learn by searching the property appraisers site in different counties in Florida, the assessed values and taxes increased dramatically over the last few years. Even houses that were not sold during the boom, were reassessed based on what new houses and resales where going for. One home in particular was purchased in 1999 for $176,000, and the taxes were about $2500 per year. In every year to present, the value increased along with the taxes, currently this house is valued at $480,000 and the taxes are over $8000 per year. This home never changed hands or was sold but it was still reassessed each year. With property values falling in Lee county, will they readjust the taxable value on that home to reflect todays reality?? If I bought a home next door to that house, for 1999 prices, say $176,000, will my taxes be based on what I paid or will they figure in other homes in the area that not on the market and will not be reevaluated until they are sold. During the boom years, Lee County got used to operating on a pretty good budget, I doubt if they are going revalue all the homes in the county to reflect todays market like they did during the boom. They would loses a ton of tax dollars if they did. So, how do you get a ballpark figure given that the county has a real problem on their hands. If house values have plummeted, which they have, homeowners are going to be lobbying to get their taxes lowered but I doubt that they will get the same attention they did when home prices were climbing. I can afford to pay taxes on a home that I buy at todays prices, I can't afford to pay taxes on a home that the county thinks is still worth 2006 prices.
I think perspective buyers might start putting in offers if they had a better picture of what the new tax situation will be in areas like this one.
Thanks again, Jody

[msms]

Hi Jody,

You're right, the property tax situation is awfully confusing here in Florida. Each county decides its own rate and to top it off, property taxes are subject to ongoing debate and tinkering in the state legislature. This is an ongoing situation you need to keep tabs on.

Yes, all homes are reassessed to "market value" each year but the key factor has been whether the owner qualifies for the homestead exemption (full time resident) or not. Parttime residents saw their taxes shoot up during the boom. Full time residents' assessment went up but their tax increase was capped (I'd need to look this up but it was around 2-3% increase per year).

Another though less significant (dollarwise) way taxes can go up is if the county's tax rate goes up. In a down market such as we're experiencing, residents are understandably concerned that counties will simply raise rates to make up for lost market value. The outcome will vary county by county although most county governments have been saying recently they don't dare raise rates because owners are fed up for the reasons you already know.

In the example you cite, yes you can be sure your rate will be based on what you pay, period. It is not hard to figure out what the tax is at any given moment.

Clearly you are aware of the market trend here in Florida, which has always been a boom/bust state (most people don't realize that). If I were you, I would contact the county for clarification as well as an experienced local realtor who can provide specific guidance for your target area. By experienced I mean someone who has been an agent for at least 10 years since so many many newbies flocked into the field during the boom. I'm not even in the business and am amazed I know more than many agents. Also look up articles in the news-press (if you are going to Lee) to get the latest. I can tell you are more than savvy enough to figure out when you are getting accurate advice/information!

Hope that helps a little bit and best of luck!