Cities and Counties may be forced to recognize REALISTIC values

By
Real Estate Agent with Century 21 Results Realty

I just ran across a story in the AJC about a bill before the legislature that would force cities and counties to not ignore foreclosures when they are appraising homes for tax purposes.

Basically, currently and historically, cities and counties don't count "distressed sales" when they calculate the value of a property for tax purposes.  When the market is rocking, that is fine... there aren't that many of them in relation to other sales.  But that isn't the case currently. There are subdivisions and neighborhoods that have as many as a third of the homes in foreclosure, and almost that many on the market at depressed prices.

And that effectively resets the value of homes in the neighborhood that AREN'T distressed.  Buyers don't ignore those distressed properties as they decide the value of the homes they are viewing.  Why should the county?

Of course, counties and cities are going to freak out if this passes... they will be looking at lower tax revenues.  They don't like that...

 

from LaneBailey.com

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Rainer
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Mark MacKenzie
Phoenix, AZ

Lane,

This is a really interesting piece of legislation, one that would certainly help homeowners but at the same time further handicap municipalities.  I don't have problem with that but it will be interesting to see if it passes, as it should.

Feb 06, 2009 07:14 AM #1
Rainer
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Lane - With this bill I see counties and cities doing tax value assessments only when they are required to; but, if they are not needed local governments will avoid losing tax money.

Feb 06, 2009 07:47 AM #2
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Lane Bailey
Century 21 Results Realty - Suwanee, GA
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Mark - It will be interesting to see if it makes it through. 

Brian - They don't do them constantly anyway, but I would guess that people can request a reassessment.

Feb 07, 2009 03:37 PM #3
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