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Another sign that the real estate market is tanking

post #1 of 34
Thread Starter 
We got our 2008 property tax assessment paper in the mail this week. According to the county, the value of our home and property has declined by over $20K (about 8%) since last year.

I'm not expecting our property taxes to go down, since we're still receiving the same services as we did last year.

We bought this house less than a year ago. I knew that the market was going soft, but receiving this assessment really surprised me. I don't know if the assessment is accurate. The county's assessment for the property in 2007 was very close to what we paid for the house. If the assessment is accurate for this year, it means that we've lost a good chunk of our equity in our home. I guess that means we'll be staying here for awhile, whether we want to or not.

Anyone else have a lower assessed value on their home this year? My FIL, who lives in the same state but in a different city, also saw a reduction in the assessed value of his home this year. I'm wondering if this is just happening in MN, or if other parts of the country are also seeing this.
post #2 of 34
WOW! I think that has to be incorrect. I would call the assessment office to verify they have your information right (land, home details etc).

Here in a rural area east of Richmond, VA - our assessment has gone up 55K in the past two years. We were quite upset (because of the increase in taxes LOL) until we checked with our realtor and found that we could actually list and sell our house for about 30-40 K more than the assessed value! I think the housing market has declined here in this part of VA (longer times on market) but overall the homes keep climbing in value. My BIL just bought a house in Richmond, VA for right around the asking price.

Good luck!
post #3 of 34
I'm in the Richmond suburbs and our assessments have gone up, though I know the market here is much stronger than in many parts of the country.

I'd contact the Assessor's Office and ask about local trends, comparable homes, etc.
post #4 of 34
Richmond must be an exeption- here our value lowered. (PA)
post #5 of 34
I'm in WA (west of Seattle) and our assessment went up this year. The land is actually valued quite a bit more than the house! And it's a reasonable house! TG we have 2 acres so we have some value in our asset column for the future. We have NO plans to leave, but we could easily sell our house for close to double what we paid for it 5.5 years ago. And that's taking into effect the housing slowdown.

We're just lucky we bought at the right time.....and we bought a house that needed to be gutted that no one else wanted.
post #6 of 34
Quote:
Originally Posted by Girlo View Post
I'm in WA (west of Seattle) and our assessment went up this year. The land is actually valued quite a bit more than the house! And it's a reasonable house! TG we have 2 acres so we have some value in our asset column for the future. We have NO plans to leave, but we could easily sell our house for close to double what we paid for it 5.5 years ago. And that's taking into effect the housing slowdown.

We're just lucky we bought at the right time.....and we bought a house that needed to be gutted that no one else wanted.
I've heard seattle is suppose to be #1 on the market right now.
post #7 of 34
I'm in Austin and ours went up 3 percent.
post #8 of 34
ours went up in AZ.
post #9 of 34
My parents are in Orange County, NY, about 2 hours north of NYC.

Their assessment has remained basically steady over the last few years. Even with the market tanking, demand is definitely increasing in that area- so, it's sort of evened out for them, if that makes sense? I don't really see it decreasing anytime soon, as developers are now looking at land near my grandmother (2.5 hrs north of NYC) for commuters.

My parents' home DID almost triple in value over just the last 12 years or so - just due to the housing boom in that area, and it's worth about 10x what it was when they bought it in 1977, thanks to the city commuters wanting housing "in the country".
post #10 of 34
I'm in MN and my assessed value was up.
post #11 of 34
Gulf Coast Texas and ours went up too.
post #12 of 34
That is interesting that so many of you say that your value went up. Cool!

We bought our first house in late 2003 for $134,000 in Southern California. We keep a close eye on what houses in the area are selling for. (sil can run comps for us) The value went up to about $300,000 when the house prices went crazy. It is now worth about $265,000. So yes, it has gone dow a LOT but it is still worth way more than what we bough it for.

We feel very luck that not only did we not loose our home in all of this crazyness we have a very low monthly payment. We bought at the perfect time.
post #13 of 34
Candice, you totally got in at a good time...right as prices started to really get crazy! I'm struggling with if we should buy now or wait one more year. We can afford a house now, but the whole process freaks me out. I suppose it will still freak me out next year, lol. Now is the first time since 2000 that we can afford a house here in SoCal. Granted, we'll have to move to the high desert, but still!
post #14 of 34
Quote:
Originally Posted by grisandole View Post
Candice, you totally got in at a good time...right as prices started to really get crazy! I'm struggling with if we should buy now or wait one more year. We can afford a house now, but the whole process freaks me out. I suppose it will still freak me out next year, lol. Now is the first time since 2000 that we can afford a house here in SoCal. Granted, we'll have to move to the high desert, but still!
It is growing so fast in the high desert!
It really is a scary decision on buying a house. Even before all of this crazyness. But you should be able to get a good deal. houses have been sitting on the market for so long that sellers will take just about any offer. I wonder though if house prices will start going up with the interest rates being so low.

Come live down the stree from me plenty of "for sale" signs.

Sorry, got a little OT
post #15 of 34
My parents bought their house in a Phoenix suburb in 2005 for $340k, which was about $80k more than the original owners had paid in 2003. Last week they got it appraised for a refinance...the appraisal came in at $215k (and they can't get the refi now). It makes me glad we don't currently own a home right now, because we would have bought in 2005.
post #16 of 34
We are just north of Richmond (far reaching DC area) and though our assessment is up over 100,000 since we bought in 2004 we'd have to sell it for about 80,000 less than our assessment. We just met with a realtor on Friday (we're headed to Brazil) and the comps in our neighborhood are FAR below our assessment.
post #17 of 34
We are in Minneapolis and our assessment came $10K less than what we paid for our home 1.5 years ago. I think it's a matter of waiting it out.
Putting your house on the market during a slow time means you had better make sure everything is staged to perfection. Having "extras" that most homes in your price range don't have is huge, too.
post #18 of 34
Quote:
Originally Posted by Noah's mommy View Post
We are just north of Richmond (far reaching DC area) and though our assessment is up over 100,000 since we bought in 2004 we'd have to sell it for about 80,000 less than our assessment. We just met with a realtor on Friday (we're headed to Brazil) and the comps in our neighborhood are FAR below our assessment.
That sucks. Not the more to Brazil, that sounds wonderful! But the having to sell it for $80,000 less than the assessment sucks.
I thought that an assessment was finding out how much your house was worth. Why did the assessor say it was worth 80,000 more than it is.

s
post #19 of 34
Our assessment went up $30,000. I doubt we could get what it's assessed for if we sold it today. Houses are sitting all over the neighborhood- one up the street has been pulled off the market and put back on twice in the last year. Another was sold at a real estate auction last year- probably a foreclosure.
post #20 of 34
It seems like assesments can be so misleading sometimes. Afterall, a house is only worth as much as someone is willing to pay for it.
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