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Builders spec homes should not be assessed for property taxes until it is sold.

By
Real Estate Agent with ReMax Central Group

In this economy right now the local builders are just barely hanging on to their hats.  They are making payments on the loans for the spec home, maintaining the property, heat/cool, maintaining yard or snow removal, Electricity and then on top of that they are paying the real estate property taxes for the time that the home sat on the market unoccupied.  Each month after each month all of these bills accumulate and add up quite high and often are the culprit of huge costs to the builder that will either be passed along to the new purchaser or the builder takes it directly off of their profit margin--which lately there is NO profit to take it out of.

Have any of you talked to your auditors offices about working with the builders to make it a little easier on the builders?  It would help to keep the end cost down for the purchasers, thus moving more inventory.

I would love to  hear others input.

 

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Darren Stewart
Mortgage Investment Services Corporation - Broken Arrow, OK
Licensed MLO in Oklahoma and Arkansas

Terrific Idea, I believe our auditors offices can assess the property once an occupancy certificate is issued which makes me wonder if we hold off on the occupancy cert till closing would that hold back the taxes?  I will try to research with the county.

 

Darren Stewart

OakStar Bank

Apr 18, 2008 02:31 PM
Betsy Byersmith
ReMax Central Group - Sylvania, OH
Realtor, GRI, CRS Toledo, Ohio

Darren,

We have actually been assessed on a percentage of completion during construction-as we have built the homes.  Our county used to give the builder a year and only charged Lot taxes on completed spec homes.  BUT the problem now is that these spec homes are sittling on the market for 1-2-3 years--it is eating up any profit that may be there for the builder.

Apr 18, 2008 02:36 PM
Erik Asarian
KW Park City Keller Williams Real Estate - Park City, UT
Interesting idea...I'm sure some of our spec home builders in Park City, Utah would appreciate the break. 
Apr 18, 2008 02:52 PM