How to stop constant real estate assessment increases?
January 3, 2010 5:59 PM Subscribe
What can I do about seemingly constant real estate property assessment increases? I feel like I am being constantly harassed by my county assessors office. I have already successfully appealed an absolutely ludicrous assessment increase (a 13% increase, in the midst of the national real estate meltdown), which came in the first year after I moved into my house. Now, 7 months after my successful appeal, I've just received another notice of an increase. Meanwhile everything I can find online says that property values in my area continue in free fall.
This letter states that the increase is the result of the assessment that happens every 3 years--but it's been only 7 months since the last increase, and only 2 years since I bought my house!
The advice that would be most helpful is, who makes these decisions? Who should I ask to speak to at the assessment office, and to whom should I direct my swearing, bulling, and eventual tears? Are there any free resources for helping people deal with this?
I qualified to buy my house based on certain assumptions about how much I would pay each month. Those assumptions are out the window with these escrow increases!
I know I can appeal--and I will--but I have better things to do with my time! Is there anything I can do to make them stop?
I live in Montgomery County, MD. Thanks for your help.
This letter states that the increase is the result of the assessment that happens every 3 years--but it's been only 7 months since the last increase, and only 2 years since I bought my house!
The advice that would be most helpful is, who makes these decisions? Who should I ask to speak to at the assessment office, and to whom should I direct my swearing, bulling, and eventual tears? Are there any free resources for helping people deal with this?
I qualified to buy my house based on certain assumptions about how much I would pay each month. Those assumptions are out the window with these escrow increases!
I know I can appeal--and I will--but I have better things to do with my time! Is there anything I can do to make them stop?
I live in Montgomery County, MD. Thanks for your help.
Zillow says 20878 is up 2.6% this past year. The DC suburbs filter a lot of Federal paychecks, and if you haven't noticed, times are good if you're a Fed. Plus the $8000 tax credit and 5% 3.5% down FHA loans are boosting SFH prices towards the Montgomery County FHA limit of $729,750.
posted by tad at 6:32 PM on January 3, 2010
posted by tad at 6:32 PM on January 3, 2010
Are your neighbors going through the same thing? Local governments are hard up for money now, and so the pressure is on to find ways of increasing revenues without "raising taxes." This is one way they could do it. Every time they over-assess properties, a certain number of people just accept it and the local government gets some more money... I'd ask around the block to determine whether you are being specifically targeted or are caught up in a more general scheme. If it is a wider problem, you could save money and time by working together with others who feel they are being unfairly assessed.
posted by the christopher hundreds at 6:33 PM on January 3, 2010
posted by the christopher hundreds at 6:33 PM on January 3, 2010
Actually, Maryland's counties have a property-tax system that is remarkably free of the typical manipulations described by gjc and the christopher hundreds, because the assessments are carried out by the state whereas the money is collected by the county. So actually, your house may well be undervalued, and the new valuation may be fair.
You can see evidence of this overall fairness in this Baltimore Sun article, which notes that 93% of Maryland homeowners were notified of reductions in their home valuations this go-around. It's not the case that Maryland has been raising home valuations in order to raise property taxes, whatever the counties' financial needs.
posted by palliser at 6:56 PM on January 3, 2010 [1 favorite]
You can see evidence of this overall fairness in this Baltimore Sun article, which notes that 93% of Maryland homeowners were notified of reductions in their home valuations this go-around. It's not the case that Maryland has been raising home valuations in order to raise property taxes, whatever the counties' financial needs.
posted by palliser at 6:56 PM on January 3, 2010 [1 favorite]
Well, you could hassle your state and federal representatives to give more money to starving counties and towns. Bush tax cuts on the federal level meant a lot of tax increases at the local level. And now, with very little of the stimulus money going to local governments, towns and counties have to find some way to pay for firetrucks and police officers. And unlike the federal government, they (all? many?) can't going into debt to do this.
(Please someone correct my details if I am wrong.)
posted by bluedaisy at 6:56 PM on January 3, 2010
(Please someone correct my details if I am wrong.)
posted by bluedaisy at 6:56 PM on January 3, 2010
Oh, but also, if you're mad, talk to your county and local reps. Not the guys in the assessment office.
Also, sometimes towns do increase valuations but lower tax rates, so the increases are revenue neutral.
posted by bluedaisy at 6:57 PM on January 3, 2010
Also, sometimes towns do increase valuations but lower tax rates, so the increases are revenue neutral.
posted by bluedaisy at 6:57 PM on January 3, 2010
towns and counties have to find some way to pay for firetrucks and police officers
Yeah, again, in Maryland, it's not possible that her county is using home valuations to raise tax revenues because her county doesn't conduct home valuations; the state of Maryland does. And it looks like this year, Maryland is overwhelmingly lowering valuations, which makes sense given the real estate market.
This is basically the whole point of Maryland's system, which I wish were the case where I live.
posted by palliser at 7:03 PM on January 3, 2010
Yeah, again, in Maryland, it's not possible that her county is using home valuations to raise tax revenues because her county doesn't conduct home valuations; the state of Maryland does. And it looks like this year, Maryland is overwhelmingly lowering valuations, which makes sense given the real estate market.
This is basically the whole point of Maryland's system, which I wish were the case where I live.
posted by palliser at 7:03 PM on January 3, 2010
I've known people who have appealed and gotten their assessments lowered in northern VA and Pittsburgh, and I imagine the process is similar in MD. This article explains it.
It looks like you only have 45 days from when you get the notice to do it according to this page.
I have heard that the most compelling argument is to show similar properties that sold for less. You've got to have data. But, if you're willing to do your homework, I bet you can get it lowered.
posted by selfmedicating at 7:36 PM on January 3, 2010
It looks like you only have 45 days from when you get the notice to do it according to this page.
I have heard that the most compelling argument is to show similar properties that sold for less. You've got to have data. But, if you're willing to do your homework, I bet you can get it lowered.
posted by selfmedicating at 7:36 PM on January 3, 2010
Ooops. I see you already know the appeal process.
posted by selfmedicating at 7:37 PM on January 3, 2010
posted by selfmedicating at 7:37 PM on January 3, 2010
Wow! here a guy comes to you for advice and all you got is suck it up because somebody has to pay for fire trucks? What happened to fiscal restraint?
Real Estate values should work both ways. If the value goes down the assessment should. In Massachusetts they got so tired of horrendous increases that the people passed a referendum making a 2.5% maximum annual increase. Still the local towns can have an override vote.
One thing to remember is if the value goes down you should demand a reassessment and abatement because that ,normally, will lower your taxes not only for that year, but in following years.
posted by Gungho at 8:15 PM on January 3, 2010
Real Estate values should work both ways. If the value goes down the assessment should. In Massachusetts they got so tired of horrendous increases that the people passed a referendum making a 2.5% maximum annual increase. Still the local towns can have an override vote.
One thing to remember is if the value goes down you should demand a reassessment and abatement because that ,normally, will lower your taxes not only for that year, but in following years.
posted by Gungho at 8:15 PM on January 3, 2010
They can leave the assessments alone and raise the rate, too.
posted by gjc at 5:00 AM on January 4, 2010
posted by gjc at 5:00 AM on January 4, 2010
Real Estate values should work both ways. If the value goes down the assessment should.
Yeah, and in the state where this poster actually lives, 93% of homeowners have received lower assessments this year -- not as a result of appeals, but as a result of the state doing fair evaluations that take into account the declining real estate market. That's what makes it seem like the assessments are pretty fair, and it's possible that the poster's is currently too low.
posted by palliser at 6:43 AM on January 4, 2010
Yeah, and in the state where this poster actually lives, 93% of homeowners have received lower assessments this year -- not as a result of appeals, but as a result of the state doing fair evaluations that take into account the declining real estate market. That's what makes it seem like the assessments are pretty fair, and it's possible that the poster's is currently too low.
posted by palliser at 6:43 AM on January 4, 2010
Has there been any place where the property assessments really do reflect the sales prices of homes? Where I used to live in NC, homes that were valued at $150,000 for taxes would be selling for $300,000.
posted by bluedaisy at 9:16 AM on January 4, 2010
posted by bluedaisy at 9:16 AM on January 4, 2010
Bluedaisy, That used to be the norm. Now most places have full (market) value assessments. In many cases the tax rate is lower than before, but the end result$ are the same.
posted by Gungho at 11:55 AM on January 4, 2010
posted by Gungho at 11:55 AM on January 4, 2010
This thread is closed to new comments.
Keep on fighting is all I can say, and make sure your assessment/appraisal is correct. Make sure it doesn't say you live in a 5 bedroom instead of a 4.
posted by gjc at 6:31 PM on January 3, 2010