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I apologize, but my expectation is that I know more about how residential real estate works than you do.
Let's take my county (Wake, NC) for example.
We set values every 8-10 years. Sometimes, they do 1 mid-period across-the-board adjustment. The tax value doesn't change when you buy. We don't do any type of annual or bi-annual re-assessment which is common many places (which could ONLY be algorithmic across-the-board in those locations). Our assessment is not intended to be the "market value of home X" and pays little attention to the home's sale during that 8 year period. It makes an attempt to compare nearby homes based upon square footage, number of bathrooms, a slight variation for lot sizes, and then "condition" of a home they can't see inside.
If you don't like your tax value when you buy - too bad. There is no challenge. WHen they do their 8-10 year re-assessment, THEN you can challenge. But they can do what they want.
Let's say for example you bought a house for $500K 6 years ago. You believe it to be worth $600K today. When you bought, the tax assessment was $540K. They reassess it for $630K today. They reassess all the similar homes nearby for $610-660K. You decide to challenge it. You pay for a certified appraisal that says $600K, which includes the condition noted by the appraiser, and verifies the square footage/bath count. The tax man says "great, we show your home as 2,750 sqft not 2,870 sqft from the appraisal, so we're going to raise your tax value to $635K."
I apologize, but my expectation is that I know more about how residential real estate works than you do.
Let's take my county (Wake, NC) for example.
We set values every 8-10 years. Sometimes, they do 1 mid-period across-the-board adjustment. The tax value doesn't change when you buy. We don't do any type of annual or bi-annual re-assessment which is common many places (which could ONLY be algorithmic across-the-board in those locations). Our assessment is not intended to be the "market value of home X" and pays little attention to the home's sale during that 8 year period. It makes an attempt to compare nearby homes based upon square footage, number of bathrooms, a slight variation for lot sizes, and then "condition" of a home they can't see inside.
If you don't like your tax value when you buy - too bad. There is no challenge. WHen they do their 8-10 year re-assessment, THEN you can challenge. But they can do what they want.
Let's say for example you bought a house for $500K 6 years ago. You believe it to be worth $600K today. When you bought, the tax assessment was $540K. They reassess it for $630K today. They reassess all the similar homes nearby for $610-660K. You decide to challenge it. You pay for a certified appraisal that says $600K, which includes the condition noted by the appraiser, and verifies the square footage/bath count. The tax man says "great, we show your home as 2,750 sqft not 2,870 sqft from the appraisal, so we're going to raise your tax value to $635K."
If my math/timeline isn't clear, let me know.
I am sorry, but I am from Fairfax County, where household income is double that of Wake County, and 8 year assessments would never happen. Now, I live in Bangkok, and prime land is 60 million per acre, and 8 years is an eternity, because the economy tends to grow rather quickly. Assessments occur every four years, but there are almost no annual property taxes. In the highly unlikely event of me buying anything in a county that went 57% Hillary, I will send you a PM, but don't hold your breath.
Assessment practices are local. In Michigan, assessments are updated every year and tax assessments can increase dramatically upon a sale.
Generally, however, I think that most foreclosures or REO sales are disregarded in terms of establishing market value. I know that they are in Michigan. I don't totally agree with that (in cases where a property is marketed fully and ample time is allowed for a sale), but assessors tend to disregard them because they feel that the Seller has a more-than-normal motivation to sell, thereby skewing what would otherwise be considered an arms-length market price. The best course of action, when buying a foreclosure, would be to immediately pay for an appraisal to help establish the market value given the condition of the house.
They really came in line in Vegas and Phoenix, but there was almost nothing but REO, especially in the condo complexes. There was even a guy, who still had his place on the market for 125k, when I bought mine for 22k. He mailed the keys in a few months later. Late 2009. I will look it up, if possible, but I think my assessment dropped from 88k to 28500 in one year.
You can not use distressed sales such as foreclosures as comparable comps. The attorney I spoke to last year told me that those comps are not valid and don't get included. You would have to find regular market sold homes with similiar square footage that sold for less than your tax assessed value for you to have a case. You cannot file a tax appeal based on what you purchased your home at... this simply isn't how tax appeals work and especially if it was a REO distressed property. If you want to try to put a case together you need to do your research on comparable comps and see what they sold at.
Except, nearly every assessor office is staffed with certified appraisers.
Not in my state. I think they now have to take some 1 day course from the state, but they are definitely not required to be certified appraisers or even hire certified appraisers.
The onus will be entirely on you to demonstrate a market based reason for the difference
vs some less than arms length arrangement with other considerations in the deal.
Tax appraisals are recalculated rather often (3-8 years).
Tax appraisal amount (regardless of mil rate) is almost universally set BELOW market value.
How did this property get appraised mistakenly by no less than 100%? Perhaps even 150%?
Here in Colorado Springs, we get reassessed every TWO years.
I protest my taxes every year. And won every year. We've lived here for nearly 15 years, so I use recently sold comps. But I know people who have recently bought who used their sold price alone and won. I also know people who have used an appraisal from a refi and won with no comps presented.
I protest my taxes every year. And won every year. We've lived here for nearly 15 years, so I use recently sold comps. But I know people who have recently bought who used their sold price alone and won. I also know people who have used an appraisal from a refi and won with no comps presented.
What market?
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