Home Buying in 33138>Question Details

Fedeyvale, Home Buyer in Miami, FL

Property taxes in the after math... (reverse situation in a, now, cheaper property)

Asked by Fedeyvale, Miami, FL Wed Apr 9, 2008

Hi all. I'm interested in buying a property for a great price in the best part of miami shores, florida 33138 (great sq. feet, great location, pool). it is publish in the low 600K.

The thing is that as this house didn't have Homestead Ex. in the sbubbled years 2004, 2005, 2006 ,taxes went sky rocket high ,... so now the assesed value is like 900K. (almost 20k in taxes!)

What will happend if I purchase it for 600K? Will my taxes be adjusted? (lower?) (If I use the miamidade tax calculator, a 600K home at 33138 is like 14k a year in taxes.)

thanks a lot for your comments!

Fred

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Answers

6
There is no great deal in real estate except for realtors. If there was a great deal - do you think that the realtors would let you have the property? They can use their 6% commission as a down payment towards purchase of the property.......... Price of a home is what someone has paid unless government can prove that there was a fraud involved. Taxes will be adjusted to purchase price if not less. Even if the property had a homestead exemption, it would have no relationship to your taxes. Call the appraisers office and confirm this for yourself.
0 votes Thank Flag Link Sat May 17, 2008
Fred, we have heard of several cases where home owners won the dispute and obtained a decrease in the assessed value. But please understand that every situation is different and you may be buying a property under market value, which means the assessment could be a lot higher than what you are purchasing at.
In our experience, the tax appraiser's office will use market value (using comparable sales) and not purchase price.

Make sure you run comps, but if you are getting a great deal, it should make up for the tax issue.
0 votes Thank Flag Link Wed Apr 9, 2008
thank Ines for your answer. Did you hear a single case in this days that de assessed amount got lower after a purchase? They are really good to update it upwards (automatically) when you purchase a home in a hot market, but in reverse...mmm....
F
0 votes Thank Flag Link Wed Apr 9, 2008
Fedeyvale - funny you mention Miami Shores, because it is exactly my market. My husband and I live, play and work Miami Shores. There are many homes that were purchased when the real estate market was hot and are now selling for a lot less. There were also many homes that were assessed too high because of inheritance or deed transfers with estates.

The house you purchase will be reassessed when you purchase, but not necessarily based on your purchase price, the county assessors office will assess according to "market value". As a home owner you have every right to dispute the tax assessment of your property and can even hire companies that will do it for you.

Take a look at this article I wrote as well http://agentgenius.com/?p=895

We've sold a couple of properties in the shores for less than the tax assessments and that's exactly what the new home owners are doing. Your Realtor should be able to guide you as to the "market value" and to companies that can help you with the dispute.
Web Reference: http://www.miamism.com
0 votes Thank Flag Link Wed Apr 9, 2008
I know I can't adopt the HE, but my comment was that as the previous owner didn't have it the house kept rising without the 3% cap limit. If that was the case I guess the house will be now in the 500/600 and I'll pay for my new 600 purchase... but not for an old 900K assesed value. Did I make my self clear?
0 votes Thank Flag Link Wed Apr 9, 2008
Hi Fred,
It doesn't matter whether the former owner had Homestead exemption or not.. YOU cannot adopt his exemption, and your purchase will be at today's assessment regardless, without exemption. So yes, it is likely that, depending on the county's assessment, you will be paying at least 2% of market value (depending on Miami Shores' city millage rate also).
Are you selling a home in Florida to purchase this one? If so, you may be eligible for portability. Call me as soon as possible so I can check this all out for you.

Ram
0 votes Thank Flag Link Wed Apr 9, 2008
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