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Read this week's AJC article |
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Sunday, 05 October 2008 |
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SMART MOVES FOR HOME OWNERS IN TURBULENT TIMES, Part 2
It's well known that the financial markets hate uncertainty. And in a
way, the same can be said for the real estate market. I am convinced
that much of the uncertainty facing today's real estate investor will
be resolved in the next few months.
In the meantime, it's hard to know exactly which moves to make. No one
knows for sure what the future holds. However, if you own real estate,
the following suggestions might very well save you money, and that's
always a good course to follow.
1. Protest your Property Tax Assessment.
Each year, your county tax assessor sends you a notice of valuation
telling you how much the county thinks your house is worth. Because
some counties have been aggressively raising assessments while the real
estate sales market has cooled, there are many communities where some
of the homes are simply over-valued for tax purposes.
The question to ask yourself is this: Would I be willing to sell my
house for the county suggested "market value" if someone offered it to
me?
If yes, you might very well benefit from protesting your assessment. If not, you might want to re-think the process.
Typically, protesting your assessment is as simple as sending in a
letter notifying the tax assessor, and letting them know what you
believe to be a more accurate valuation. Remember that real estate
values are most often based on recent comparable sales in your
neighborhood, so it can be very helpful to enlist the aid of a local
real estate professional.
Most often, the tax assessor will notify you that they have reviewed
their data and that they are unwilling to lower their original
assessment. If that happens, or if the amount they propose is still not
low enough, you can move to the next step.
2. Appeal your valuation to your Board of Equalization. In order to
appeal, you must send a brief letter to the Board, notifying them that
you wish to appeal the decision of the tax assessor.
It is not allowable to appeal based on the fact that your taxes went up
too much all of a sudden, even though that may have happened. Instead,
you should state that your appeal is based on "valuation and lack of
equalization." In other words, you believe your house is not worth as
much as the assessor does, and that there may be others in your
neighborhood with nicer houses and lower tax bills. Each of these is a
valid basis for an appeal.
At your appeal hearing, you will be given five minutes or so to meet
with the Board and present your case. Usually, these are three citizens
just like you who have agreed to serve in this capacity. My advice is
to present evidence of at least three similar homes in your
neighborhood which sold before January of this year. Hopefully, their
average selling price will be lower than the county's valuation of your
house. As further evidence of a need for an adjustment, you can also
point out more desirable homes in your neighborhood that are valued at
a lower amount than your home.
History tells us that you have a one in three chance of getting your valuation lowered if you will go this far in the process.
3. If you are still not satisfied with the county valuation of your
home, you may appeal the Board's decision to the Superior Court of
local jurisdiction. Know that there are fees involved and that you may
want legal representation for this step. Most taxpayers decide it's not
worth the additional time and expense to pursue a reduction in property
tax valuation at this level.
Even so, I have talked to homeowners who represented themselves and
went to court to tell their side of the story to a judge. They felt it
was worth the effort.
4. Consider Buying Real Estate Now.
The reality is that real estate is on sale and interest rates are still
very low. By definition, that makes this a good time to consider adding
a rental house to your investment portfolio.
I am not suggesting that you go out and buy twenty houses between now
and January. But I am suggesting that this market will stabilize and
rebound, and when it does, the bargains we are passing by today may no
longer be available.
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Upcoming Events
BUYING FORECLOSURES IN GEORGIA
NEW for 2008: Bank-Owned Home Bonanza
This seminar has been updated and revised for 2008 to reflect the dramatic changes in the Georgia foreclosure marketplace. We are literally facing a flood of foreclosure properties, and there is profit to be made in each and every one of these homes.
Whether you want to build a portfolio of homes for your retirement or you simply want to find a better home for yourself and your family, this program is for YOU.
LAST CHANCE THIS MONTH!!
• Saturday, Oct. 11th, 2:00 P.M. until 5:00 P.M. - Renaissance Waverly Hotel in the Cobb Galleria
This COMPLETELY NEW SEMINAR examines the roots of today's foreclosure meltdown and explains how you can take advantage of this opportunity in your spare time.
Advance Tickets: $69; bring a friend for an additional $30.
Couples share materials.
Detailed information available under the “Seminars” button
This course approved for 3 hours of Continuing Education credit by the Georgia Real Estate Commission.
The Real Estate Investor's Institute will be held at Emory University on
November 22, 23 & 24, 2008. Make plans to attend.
Detailed information is
available under "Seminars."
This course is approved by the Georgia Real Estate Commission for 12
hours of Continuing Education Credit. Agents must bring license number.
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Essentials