Declining Value of Homes Means $AVINGS$$$$$$

If you live in a state that has high property taxes like I do, you might want to consider having an appraisal done sooner than later. I was shocked to learn that the value of my home had dropped $10,000 since I purchased it over 11 years ago. While I don't intend to sell it anytime soon, the difference between what the tax assessor says my home is worth and what the appraiser says it is worth, is over $75,000. You have to remember, the assessor only looks at the value of your home every three years so the last time they assessed it was before the recession and housing bust. Your home is probably worth considerably less depending on where you live and a small investment for an appraisal now can save you lots of money over the next three years.
Anybody in a similar situation? I may have just become your best friend Don’t keep paying taxes that you don’t owe. They aren’t going to tell you, you have to do the work yourself.

 

Naaaah. The government needs the money more than I do.

 

Excellent advise !!!

Our home is about 10% less than the 2005 purchase price, after jumping 200% at the peak. During the peak, our neighbors were selling homes for close to 200%.....damn hindsite 2100 SQF Spanish style ranch, Clembo has been there, no biggie of a house, just a nice one. Nothing super.

My rental Condo is worse. We bought it for 100% before the peak of 150% , and they are now selling for 40%.....but we have had tennants and the mortgage is covered....phew. I live seperate from my wife in an apt.....

Phoenix area was one of the most hard hit in the nation......

 

We actually bought around the bottom a little over a year ago. We got our house for 35% less than the buyer paid for it a couple of years before and 20% less than what he listed it as about a year after he bought it.

 

Good timing Stu !!!!!
I am going to stand inline for my Obama bucks :-0
Not......

 

We got the 8000 Obama Bucks when we bought the house too. Timing is everything...but starting a new job in a new city, we needed a house and would have bought regardless of rebates or market. Kind of like the saying about even a blind squirrel finding a nut every once in a while. lol

 

I don't know what the property taxes are like in your state but here in Illinois, I have to escrow them and they amount to over 1/3 of my monthly payment. Since the peak of home prices my house has lost 75,000 dollars in value. I know the new assessments come out next month and they were compiled last January so there is nothing I can do about this year but next year my property taxes should decrease by as much as 1/3. Hey, it’s like my own personal California Prop 13. Now you know why states are hurting so much because they know what is coming especially those that rely on property taxes rather than sales taxes - unfortunately, Illinois relies on both too much.

 

I am in IL and I think property taxes are levied at the city/county level, not state, here. My effective prop tax rate down here is 1.79% of home value per year. (total yearly prop tax divided by home value = 1.8%).

 

Not that I am a traveler (I have lived in the same house for 35 years), but now that you mention it, I know of no states that collect property taxes. Are there any?

 

Yes, they are levied at the township and county level. You have to send your appraisal to both.