Jfinsup1, Home Buyer in 60030

Property Taxes

Asked by Jfinsup1, 60030 Sat Aug 28, 2010

With the declining market and home values going down does that mean that properties are being re evaluated and property taxes will go down? They are already so high in the Grayslake area of Lake County.

Help the community by answering this question:

+ web reference
Web reference:

Answers

13
Mike Stodola, Agent, Libertyville, IL
Sun Aug 29, 2010
Real estate taxes are too high based on falling values in many areas. All my buyers are appealing their assessment and the best way to do that is after buying to have your contract and you p-tax form. My clients use a company called Lake County Appeal. They are outstanding at what they do, and are paid on preformance besides a small up-front fee. While you can do it on your own, for the small amount they charge, I work with them. You can find them at http://www.LakeCountyAppeal.com. The owner, Curtis Pearlman, is a builder himself so he knows exactly what he's doing.

Good luck!
Mike Stodola
1 vote
John Walin, Agent, Libertyville, IL
Mon Nov 8, 2010
The homes that sell so far under assessed value often are foreclosures and the county taxing authority will not take a foreclosure as a comp in reassessing the house within the neighborhood. Plus, homes that close in 2010 do not count in the current tax appeal. County takes a rolling 3 year average for 2007, 2008 & 2009 and the specific house is not evaluated in isolation. There definitely is a lag time between purchase and getting the house reassessed and be prepared to live with the higher taxes the first year. I personally like many areas that are in unincorporated Lake county and have a lower tax rate than Grayslake. Even if you get reassessed, the rates vary by area and town.

If you have not yet selected an agent to work with, please give me a call.

WheneverLifeMovesYou.com
847 276-0120
0 votes
Jim Starwalt, Agent, Grayslake, IL
Tue Nov 2, 2010
Hi Chris,
You will not necessarily be reduced down to what you paid for it. You will be best to get your appraisal (if you got a loan, you should have received a copy of the appraisal you paid for, if not go back to you lender and ask for it) appraised value can be quite a bit different than what you paid. The tax assessor will base any decisions on a certified appraisal not purchase price.
If you also would like a list Grayslake comps to back it just call or email I can email them out to you.
Grayslake residents have been have good results in reducing their assessed value.
0 votes
Chris, Home Buyer, Lake County, IL
Mon Nov 1, 2010
Thanks Mike for your response. We haven't purchased a house yet but we like a few and the community, just hate the taxes! Let's assume it's a normal purchase, not a short sale / foreclosure. In that case do most appeals get the fair market price to decrease to the purchase price since it technically is the 'fair market price' because that's what I paid for it?

Thanks..
0 votes
Mike Stodola, Agent, Libertyville, IL
Mon Nov 1, 2010
Chris,
Did you appeal your assessment? You would have probably used the p-tax form for this? Also the amount doesn't have to go down to the exact level it was purchased for because 'fair market value' doesn't include distressed sales. So it also depends on how the property was sold and purchased.

Mike Stodola
0 votes
Chris, Home Buyer, Lake County, IL
Mon Nov 1, 2010
I have a follow-up question. If a house in Prairie Crossing (Grayslake) is assesed at 474K (according to the 'fair market value' on the latest tax bill) and it is purchased at ~330K will the appeal decrease the tax bill by the same ratio? How can they not, since that in fact is the true fair market value!?
0 votes
Chris, Home Buyer, Lake County, IL
Mon Nov 1, 2010
I have a follow-up question. If a house in Prairie Crossing (Grayslake) is assesed at 474K (according to the 'fair market value' on the latest tax bill) and it is purchased at ~330K will the appeal decrease the tax bill by the same ratio? How can they not, since that in fact is the true fair market value!?
0 votes
Jim Starwalt, Agent, Grayslake, IL
Fri Oct 29, 2010
Yes, Our taxes are high, but on a good note we did just get notice that Grayslake has a 3 percent surplus in the city budget.
0 votes
John Walin, Agent, Libertyville, IL
Tue Oct 5, 2010
Hi
You're right! Taxes are especially high in Grayslake relative to the rest of Lake County. Unincorporated Grayslake and Gurnee offer better tax value for the same size home. Previous postings regarding the tax multiplier and the assessed value are spot on! The fact is most people don't contest their taxes and if you do within the narrow window they provide, you have a chance to reduce next years tax burden.

I fought my property taxes and hired David Monatelli firm, http://www.axepropertytax.com He specializes in Lake County, knows the state assessment guidelines and represents you in front of the Lake County review board. He is paid 50% of the first year's tax savings and saved me $1700 on my taxes and so I wrote him a check when the new bill came out for $850.

Best of luck! Call me if you care to discuss further, 847 276-0120
0 votes
Eric Egeland, Agent, Buffalo Grove, IL
Tue Sep 7, 2010
Unfortunately the municipalities need their money & regardless of what values are doing the need X amount of dollars. They could reassess all values lower, but then they would just increase the multiplier rate.

Individually everyone can contest their taxes in comparison to similar homes, but as a whole declining markets do not equate to declining taxes.
0 votes
Jerry Grodes…, Agent, LOda, IL
Sun Aug 29, 2010
Government has anticipated falling property prices. They still want their taxation levels to remain constant. Taxes have a multiplier system built in. Depending on your area, they can say your value went down but the multiplier went up (they raise it as need be). When prices go up again, they may lower the multiplier as well. Currently, your property tax could remain the same or even go up because of this system.
0 votes
Don Tepper, Agent, Burke, VA
Sat Aug 28, 2010
No, it doesn't mean your taxes will go down.

I can't specifically address your area. But, in general, the assessed values of properties will go down when surrounding sales justify it. So it's very likely that your assessment will go down.

However, that absolutely does NOT mean that your taxes are going to go down. Your taxes are based on two items: (1) The assessed value, and (2) the tax rate. Often, in order to offset declining valuations, localities will raise the rate.

Here's an example. Suppose a home is assessed at $100,000. And suppose the tax rate is $1 per $100 of assessed value. In this case, the taxes on the home would be $1,000 ($1 x 1,000).

Now the assessment falls to $90,000. IF the tax rate remained at $1 per $100 of assessed value, your taxes would fall to $900. However, in order to maintain a steady flow of revenue, your taxing authority might raise the tax rate to $1.10 per $100 of assessed value. Now you'd owe $990 in taxes. Pretty much no change. Or suppose the taxing authority raises the tax rate to $1.20 per $100 of assessed value. Now you'd owe $1,080 in taxes, an actual increase in the amount you'd have to pay.

So, pay attention not only to your assessment but also to your tax rate.

Hope that helps.
0 votes
Scott Paul, Agent, Grayslake, IL
Sat Aug 28, 2010
When the new valuations come out this fall you may protest your assessed valuation through the township assessor's office. The value they come up with will probably be lower than last year. However, the assessor uses a computer model that considers sales from the previous 3 years. Because prices have dropped steadily over that time--the new assessed value may still not be proper. When checking assessed value you need to use sales before 1/1/2010, because that is the effective date of the next valuation. So you can review information on comparable homes that sold in 2009 and see if that supports a lower value than what the assessor comes up with this year.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more