Any home buyers out there? I need your opinoin (Savannah: sales, foreclosure)

[Padgett2]

I think that one of the problems is that people have vastly overpriced the homes based on what the County Tax assessment is. The County bases that figure on what similar houses sold for in the neighborhood in 2006-2007.

No one likes the idea of putting a house on the market at a figure that is much lower than the tax assessment figure. And they wouldn't dream of asking for a reasonable amount. Therefore....the house costs too much. I think people are tired of looking and are just waiting to see what happens. If I were moving to Savannah, I would want to rent for at least a year to see what the area is like before I considered getting a loan to buy one of these homes.

There is also a matter of opinion when it comes to deciding if a house is in a convenient or desirable neighborhood. For example, I have lived in Savannah all my life and the area that you describe is not one that I would choose. It's nice, but I would want to be much closer in.

The tax assessment on my present home, which is small and over 60 years old, is 258,000 bucks. It's not worth that except for the location. No one would pay that for it. It wouldn't be smart to put it on the market for that amount. The house would easily bring about 200,000, but I think buyers would be suspicious if I were to ask that amount.

It's like walking a tight rope. You can't lean too much in either direction.

[boilrmkr]

I always thought what the tax man valued the house for is always low. They don't know what is inside the house as far as upgrades etc..

[Padgett2]

They base the assessment on what similar houses are selling for in similar neighborhoods and on the square footage. In the past few years, houses were selling well, and for inflated prices. The assessment is based on those figures, not what is on the inside of the house. You could have granite in the kitchen or unpainted, warped plywood. It would be the same unless you appealed the assessment.

Location is important too. My little lot, 120X120, is valued at $110,000. That makes the house value at only about 148,000. Put the same house on a $25,000 lot and you have a house that is worth the price.

[Padgett2]

Just a word more......don't forget that while the County assesses on the square footage, location, an appraisal by a bank or morgage company would also include upgrades, fixtures, etc.

It's just unfortunate that at the present time, the Tax digest reflects the inflated selling prices of the past few years. Let's hope that it corrects itself soon. If it were not for the Homestead Exemption and the age and low income exemption and the Stephens-Day restriction, we would not be able to handle the tax payment. It is over 50 dollars a month as it is.

Check out this site and see what your neighbor's houses are on the tax books for. You may be supprised.

Chatham County

[boilrmkr]

What's the difference on that web site betweet the base value and "with CPI"?

[Padgett2]

I really don't know. I think it is the value (maybe just the house, not the house and land both) of the property when the Stephens-Day Bill went into effect or the purchase price if it was bought later. I couldn't begin to guess what CPI stands for.

I have wondered what I would do if I had to sell. I couldn't bring myself to ask for the assessed value.....but it sure would be nice to get it!!!

[ellie]

Originally Posted by boilrmkr

I always thought what the tax man valued the house for is always low. They don't know what is inside the house as far as upgrades etc..

In a lot of cases, the county assessment used to be on the low side. Recently however, with the huge run up in prices based on a series of flips, many local homes have been reassessed at far more than they can actually sell for. Tax assessment runs about a year to two years behind actual sales, in real terms. They may claim to base it on recent sales, but the assessors are rarely on the mark.

In some areas around town the assessments dropped this year. In others, it continued to rise. Tax assessment is only one part of the equation to the value of property.

The OP may also wish to post on the real estate forum of City-Data. There are many more experts there than there are here.

Hopefully he will have good luck soon.

[bgnzsavnh]

Originally Posted by Padgett2

I really don't know. I think it is the value (maybe just the house, not the house and land both) of the property when the Stephens-Day Bill went into effect or the purchase price if it was bought later. I couldn't begin to guess what CPI stands for.

I have wondered what I would do if I had to sell. I couldn't bring myself to ask for the assessed value.....but it sure would be nice to get it!!!

CPI stands for Consumer Price Index

http://www.chathamcounty.org/boa_facts.pdf

The Chatham-Savannah Board of Education and the City of Savannah bills have a Consumer Price Index percentage that will be added to the base year value, whenever there is an annual increase in the Consumer Price Index. There have been annual Consumer Price Index increases each year for the last 10 plus years. The Consumer Price Index percentage increase is not included in any of the other levying authorities’ bills.

This is why it is important to ask any realtor point blank if the property is in the city limits of Savannah, there are parts of 'Pooler' and Chatham County that are in the City of Savannah and adjacent to Effingham County

Each resident of Chatham County is granted an exemption on that person’s homestead from all Chatham County ad valorem taxes for county purposes in an amount equal to the amount of the assessed value of that homestead that exceeds the assessed value of that homestead for the taxable year immediately preceding the taxable year in which this exemption is first granted to such resident. This exemption shall not apply to taxes assessed on improvements to the homestead or additional land that is added to the homestead after January 1 of the base year. If any real property is removed from the homestead, the assessment in the base year shall be adjusted to reflect such removal and the exemption shall be recalculated accordingly. This exemption shall include only the primary residence and not more than five contiguous acres of land immediately surrounding such residence. This exemption applies to all ad valorem taxes for county purposes levied by, for, or on behalf of Chatham County, including, but not limited to, any ad valorem taxes for special district purposes, but not including taxes to pay interest on and to retire county bonded indebtedness. This exemption shall not apply to or affect state ad valorem taxes, and county school district ad valorem taxes for educational purposes, or municipal ad valorem taxes for municipal purposes. This exemption shall be in addition to and not in lieu of any other homestead exemption applicable to count

With the Stephens-Day Bill my evaluation has gone up over 500%
but taxes are still at the 2000 level. There is very little incentive to protest high values. My valuation is half of my neighbors. His value has gone up 1000% in the last 5 years.

[gamecock43]

Wait Bgnzsavnh-
I am hoping to soon be a resident in Savannah, and 1st time home buyer. I read your recent post but it kind of went over my head. Could you explain the CPI and Stephens-Day bill in a little more plain talk for me? Thanks!

[bellhead]

We all agree there was a bubble in Savannah which hit it´s peek in late 2006 early 2007. Just how much of a bubble was there.. I know this is not Miami or LA. but it seems like a lot of people bought in this bubble and they are unwilling to realize they are now screwed and are going to take a loss.