Are You Over Assessed?

Over the last half decade or so, it has been a real roller coaster for real property owners. An unusual spike in demand and easy money propelled values to historic highs versus the moving average only to come crashing down regressing to values of a decade ago in some cases. Among the carnage left to deal with for property owners is an assault on property rights, historically tight credit and massive properties in distress dragging down the value of your property. You are wondering where to hide!

For property owners, few steps can now be taken to reduce your financial exposure without parting ways with the property. However, perhaps an opportunity for relief recently arrived in the mail in the form of the TRIM (truth in millage) notice you received in mid-August. Certainly, during the home value escalation the local assessors offices kept pace nicely raising assessed values in unison, but have they been equally efficient during the recent downturn in bringing the values back down?
In our capacity as residential real estate appraisers, we notice that approximately two thirds of residential real estate is over assessed, meaning the assessed value the property taxes are based off of exceeds the current market value. The end result is the property owner paying higher property taxes than the market would dictate.

What can cause a property to be over assessed? For starters, the physical characteristics of the building could be in error, most notably living area square footage. Although each year stands on it's own, an error here could represent a significant amount of excess payment over time. In the current environment, perhaps the distressed sales in a particular neighborhood were not given enough weight.

For a myriad of reasons, it is a prudent measure for all property owners to perform due diligence in investigating the assessed value and how it relates to market value. The appeals process is not overwhelming, but there are deadlines that are strictly adhered to. Please refer to your TRIM notice for details regarding the avenues for appeal and the deadline dates as each county is slightly different.

In this competitive marketplace, opportunity cost is more significant than ever. Certainly, if you require assistance, Accurate Property Values would be happy to assist you. Please feel welcome to visit us at our table at the CFRI General Meeting in September or call us at 407-488-6458.

Lessons Not Learned

Unfortunately, the financial bill (FINREG) has passed. Crafted by two of the top members of the architectural team of the housing crisis, Rep. Barney Frank (D;MA) and Sen. Chris Dodd (D:CT), this bill be deal a serious blow to the consumer. In addition, it will add further negative pressure on the housing market long term.

FOX Business takes up the potential effects in the following interview:



The new bill, over 2000 pages with many of the particulars of the legislation yet to be firmed up, will simply be devastating to small business and consumers. Governmental regulation increases costs which limit the choices of the consumer.

The banks will not be free to lend as they see fit, in their own communities taking into account current local market conditions, but will be governed under the new regulatory framework of this bill. It certainly will make effort to secure credit by the consumer more costly and much more difficult to obtain.

While we had to pass it find out what in it, there have been some real distressing items uncovered, from regulations on insurance to affirmative action hiring quotas for Wall Street.

Among the more puzzling items, the bill does absolutely nothing to rein in Fannie Mae and Freddie Mac, the government sponsored entities which contributed greatly to the housing crisis. Imagine that! CNBC has more:



The bill, signed in a ceremony at the Ronald Reagan Building, is insulting as it is in direct opposition to the principles and economic beliefs Reagan championed.

It would be great for Americans to let the following sink in: Free Market Capitalism is the best path to prosperity!