I recently read an article regarding taxes on short sale and bank foreclosure properties. I found it interesting, as the last several buyers that I have worked with have purchased homes that were either bank owned or getting ready to be bank owned.
New owners hope that their new home will be assessed based on the new lower price they purchase the property for at time of sale. But, we are hearing that may not be the case in Florida.
There are many things taken into consideration when assessed values are calculated. In Florida the tax assessors office compares prices of similar homes that have sold in an area to determine values. These comparisons will NOT include any foreclosure or short sale properties.
In some areas of Florida assessed value could be approximately 85% of market value.
Tax bills in Brevard County Florida were mailed out the first of November. The assessments are based on property values in January of this year.
NOTE: Please check with the tax assessors office in your area to determine how taxes are calculated in your area.
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Well since this is our 5 year where the appraisers had to walk the properties most taxable values on homes did drop some but I dont think they are being affected the way they should.
where did you hear this?
Sandy, It seems your going to get a great buy however you might have to wait a year to get your assessment lowered. I have heard this from 2 sources in our county
I have not seen that either. Taxes don't go down much on short sales, because as soon as the new owner starts to repair and clean them up, it reaches the normal value.
Sandy,
The tax assessors here are doing the same thing. I think this should be stopped. If the assessors do not have to use the foreclosed properties then why do the appraisers for the banks? It does not make sense.
I have considered being an advocate for property owners and help fight unfair taxing.
Not sure if it would make a difference though,
Ann
Orlando Agent, I agree that tax bills have not declined like property values have. And they may not anytime soon. Because of the 3% cap on Florida Save our Homes some home assessed values never increased on their tax bills in relation to the increase of 180% in home values over a 5 year period of time. So as values declined, some owners taxes are still not up in relation to the huge increase.
Hi Joseph, I read the article last month at Daily Real Estate News Online.
Hi Paul, I agree that it could take some time until the assessments come down to where they should be.
Mary, Well this article is indicating that short sales and foreclosures are not even going to be considered in the comps used to determine values in a given area.
Hi Ann, Good point. I'm not sure whether or not the appraisers in our area are using short sale and foreclosures in their appraisals. That's something I'll have to check into. Thanks for bringing it to my attention. Have a great week!
Sandy,
I believe the appraisers have to included the foreclosures and short sales. Have you noticed the appraisals are coming in really close to the contract price?
Ann
Hi Ann, I have noticed since the day I started in real estate that the appraisers are usually coming within $1000 of the contract sales price on appraisals. In our area that has always pretty much been the case. However, I don't know that that means they are actually using other foreclosures and short sales in their appraisals. I will follow up, to find out in this area if they're doing that here.
Sandy,
I have not noticed the closeness in price and appraisal until this year. Up until now, I have always been able to show my clients a "clear" profit on buying.... Except this year.
Ann
Hi Ann, That's interesting. And I'm sure it varies in different parts of the country. Take care!