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You've Got Bad News & Good News -- Which Do You Want to Hear First?

It was the best of times. It was the worst of times.

Clouds with silver lining So began the classic Charles Dicken novel "A Tale of Two Cities." When a friend comes to you proclaiming that he's got some bad news and some good news, which do you want to hear first? Is the glass half full or half empty? In the immortal words of Guns N'Roses Poison, "every rose has its thorn, just like every night has its dawn." And they say that every cloud has a silver lining.

Okay, enough with the clichés.

If you own a home in Northern Virginia (like I do), you likely received or soon will receive your Notice of 2008 Real Estate Assessment from the county or city were you live.

Bad news first

Bad news first: more than likely the value of your home declined. In the City of Alexandria, for example, residential condominiums declined an average of 4.3% from 2007's assessed value. Single family dwellings decreased about 1% on average. Overall, the Department of Real Estate Assessments in Alexandria shaved an average of 1.9% off of everyone's home value for 2008.

Good News! Good news: you will pay less property tax in 2008 than you paid in 2007. That's little compensation if you plan on selling your home or your adjustable rate mortgage has adjusted, but for some the savings could be significant.

Additional good news: values in close-in areas of Northern Virginia including Alexandria, Arlington, and Falls Church were more stable and declined only slightly compared to other more distant suburbs.

Each jurisdiction in Northern Virginia sets its own real property tax rate later in the year during their budgeting announcement.

There's also a chance to appeal your tax assessment if you believe the value is incorrect. Click here for more information on appealing tax assessments.

I'm a glass full type of guy.

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If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
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Posted by Brian Block -- Northern Virginia & D.C. Real Estate on 02/20/2008 06:15 PM

Comments (30)

real estate tax, tax, northern virginia real estate tax assessments, alexandria property tax, tax assessment appeal, property tax bill

This post has been included in Virginia Information Alexandria City County, VA Information Alexandria, VA Information
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30 Comments on You've Got Bad News & Good News -- Which Do You Want to Hear First?

FEB

2008

In most places I bet they will not be jumping to get a new assessment out like they were in the hot market.

Hi Brian, the news isn't all that bad...when they sell they will buy at a lower price but the home they purchase may appreciate at a higher rate when the market comes back if they buy up in value. Nice post.

I just got both of mine from the City of Alexandria. One was a shocker the other was okay. Now we just have to wait and see what happpens to the tax rates!

Well; if you gotta have bad news - at least there is good news!!

Good that you have some good news. Not all agents can find any in their market!

In order for the good news to stay good news the politicians have to slow their spending when values drop.

Brian,

I want the 'bad news' first...but any savings is laudable!!! Thanks, Fran

Brian I think you have to look at it positively or you just get in a funk. On a side note that was Poison that immortalized those words, lol.

Taxes going down!? I all for that! Problem is they have not assesed taxes in my area for 10 years, they just raise the MIL rate.

Brian~It's great to see the good news here and because of that it's overshadowing the rest. What a great attitude you have Mr. Glass Overflowing.

Brian...we own a waterfront point lot in Louisa County. That stayed the same. Our home in Spotsylvania County increased by $85,000, a jump in the land with no increase in the improvements. We haven't received anything from Williamsburg. In fact, I don't even know (I'll have to ask my husband) when the assessments are done down there.

My kids will tell you I always want the bad news first. Get it over with and move on to the good stuff.

Cheers from one full glass to another!

FEB

2008

Brian thats interesting. Here in Taxachusetts it doesn't matter what the market is doing when it comes to taxes. If the market is dropping and the assessments are going down the towns raise the tax rate to compensate. It is all about revenue needed to run the town properly and on budget.

Be glad you are not in Michigan nearly all areas have had a reduction this year in the assessed value but because of the homestead exemption the taxable value has increased. Its sunny today and 4 degrees Spring is only weeks away and with it the Spring market.

That's certainly great news for all of the people who are staying put! Price reductions only matter if you're selling, but tax reductions are a good thing for everyone else!

ROSS: Thanks for your comment. I think they are required to send the assessment by a certain date each year.

GARY: Thanks for your comments. You're right on the money.

CINDY: My assessment went down by 5.25% from last year. However, we are not planning on moving anytime soon.

JAMES: The good news lessens the blow of the bad.

MARGARET: Isn't that true?

RANDY: Do you think that will ever happen?

Hopefully those who absolutely must sell have enough equity to do so and dont have a crazy loan.

FEB

2008

FRAN: Yes, I'll brace myself for bad news first and then soften the blow with the silver lining.

LINDA: Thanks for correcting my musical knowledge -- I've made the change in the post.

LARRY: Interesting. We get new assessments every year.

JULIE: Sometimes any news is good news. Not always these days.

KATHLEEN: Thanks for your comments. It's interesting to see these tax assessments each year. Sometimes they are spot on with the fair market value while other times they are incredibly far off from the actual market values.

BILL: That's often the case here as well. However, the last few years, the tax rates have been going down as the county and city budgets have been getting fat on the over-appreciated real estate values. The rates get announced later this year and it will be interesting to see what happens then.

TERRY: Our spring market is starting to get under way as well even though it's 30 degrees and freezing rain today.

PAT: I agree. If you are staying put, tax reductions are a helpful relief. Especially if your ARM has adjusted upwards.

DEE DEE: That's all that we can hope for in those cases.

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