So this week I had a hard look at how much taxes really do affect the value of our real estate market. I always knew that Taxes, just like religion and politics, can make for very heated conversations. I always knew that town assessments lately have no bearing truly on what market value is or what a home is really worth. I am constantly fickled as to how they truly come up with "the" assessed value. In my opinion and expertise, maybe 1 out of 20 homes are truly assessed correctly. We love when they are assessed to low and livid and postal when we are over assessed.
I recently sold a home. The home was sold for $75,000 due to the fact it carried only 2 bedrooms, no basement and really had no cosmetic updates. A typical 2 bedroom home with a basement sells for $89,000.
The town recently assessed the home to $130,000 and due to the fact that the home was an estate, no one was aware and able to grieve this ridiculous number. It was caught a week before closing. The extremely new and high taxes "bumped" the buyer right out of his mortgage. Outrageous. I was able to get the assessor to say he would readjust the taxes to what the appraisal value is ($79,000)- but not until next March. Dilemma: put it back on the market and hope for a credible buyer with enough means and credit to not care about the extra tax payments or lower it to the number the buyer and bank can afford in payments. My seller, very gracious, lowered to the new amount which was over $20,000.
So now- a house that is assessed for $130,000 with the town, appraised at $79,000 will now be sold at $56,000 to accommodate the new assessment. Truly a travesty.
Thank the Lord the seller was graciuos and anxiuos to sell and the buyer was patient throughout this process.
There is never a dull moment in my job. Never.