Home Buying in Avondale>Question Details

Jessica, Home Buyer in 32204

House listed at $150,000. Just market value by city apraisers over $194,000. Can we do anything about this?

Asked by Jessica, 32204 Sun Apr 20, 2008

I have been looking at a house that is listed for $150,000. The just market value of this house is over $194,000. With taxes assessed at that value, it is not possible for us to afford the home. I was under the impression that just market value was what you could reasonable expect to sell/buy the home. It is nice, but 194,000 would be an outrageous asking price. Is there anything recoruse for us or are we stuck with the taxes proposed for the property?

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Hi, Jessica;
If you are using a Realtor (if you're not, then call me), they'll tell you that the property gets reassesed every year and that the assesment can be challenged at any time. We're seeing a lot of this with the declining market and it's important to keep two things in mind: The assesed (or "fair market" ) value should be between 80-90% of the retail value of the property. "Retail" value is what it sells for today on the open market. The homestead exemption of $50,000 reduces your taxable amount even further so that your $190k assesed value should be reduced to about $135, then take $50k off that and you should pay taxes on approx. $85k, or $1530/yr (127/mo) at the .018 millage in Duval County. Hope that makes things a little easier. You might even get the assessor lower than that.
However (and this is important), if you are buying a short sale or foreclosed property then you will be stuck with the fair market value assesment because the property is selling at an artificially depressed price that isn't neccesarily reflective of comparable properties. Call me for more detailed information.
Eric Cavanagh Sr. Keller Williams Realty Jacksonville 904-589-6941
Web Reference: http://www.EricSellsJax.com
1 vote Thank Flag Link Tue Apr 22, 2008
Jessica- When you purchase the house, the county "should" reassess the taxes at the new value, which is the purchase price. But each county has a slightly different way of doing things. I would recommend that you call the tax assessor's office and ask them if they will adjust the price right away, or if they will wait until next January. You may be able to apply a little bit of pressure, if they seem less than accommodating.
2 votes Thank Flag Link Sun Apr 20, 2008

Typically when a house is purchased, the assessed value is 'reassessed' by the property appraisers office. This is why if you buy a house that is assessed at 150K (because that is what the sellers have currently) but you pay them $200K, your taxes will go up.

Now we are on the other side of that fence, so I'd suggest you call the property appraisers office and ask them what their procedure would be in this situation.

You should also Google property appraiser for the county and see what their web site says. Orange County, FL where I live has an awesome site which will tell you how to challenge the value, it has a calculator for what your taxes will be if you purchase a house at a certain price, etc.

Last but not least, make sure you have an agent to help you with this situation. Challenging a valuation could take quite some time, so you might want to ask for a credit from the seller to cover the higher taxes until they are reassessed, since he is likely to have this problem with anyone else, he might entertain that idea.

Good luck!
1 vote Thank Flag Link Sun Apr 20, 2008
Assessed value of a property should reflect actual market value. If you buy this property for $150,000, your city probably has a process for "protecting" the current assessed value. I suspect you could take your closing statement to the assessor and they will adjust assessed value accordingly at the next adjustment date. Talk to the assessor about their procedures.
1 vote Thank Flag Link Sun Apr 20, 2008
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