Property Value/Appraisals RANT

[dave1949]

Property taxes are set by the town budget divided by the value of all the property in the town "The Grand List" A well run city with a lot of commercial property can have tax rates well below average and a poorly run rural town that tries to provide city services like trash collection without some industry or commercial property to support it can have very high tax rates. I think the benchmark for what is low or high is two percent of what you could really sell it for today. that would be school, town and county taxes combined. More then two percent your getting ripped off less then two percent keep quiet and reelect those in charge.

That (2%) is an interesting metric. My tax valuation is $208,700. My total annual property taxes are $2,990. So:
.02x = 2990
2990/.02 = $149,500

Selling anything around here the past few years that is above $150,000 is tough, and will stay that way until the folks from MA, CT, NJ and NY return with money. I have no idea what I would get for my property if I had to sell it and actually could. My plan is to outlive this recession :laughing:

For the condo I own in Ohio, the 2% works out to be about $18,000 below what like units have sold for recently. So, that is good, you are saying.

 

[J F]

Where exactly is the "heart of dixie", kenmac?

 

[vtsnowedin]

That (2%) is an interesting metric. My tax valuation is $208,700. My total annual property taxes are $2,990. So:
.02x = 2990
2990/.02 = $149,500

Selling anything around here the past few years that is above $150,000 is tough, and will stay that way until the folks from MA, CT, NJ and NY return with money. I have no idea what I would get for my property if I had to sell it and actually could. My plan is to outlive this recession :laughing:

For the condo I own in Ohio, the 2% works out to be about $18,000 below what like units have sold for recently. So, that is good, you are saying.

$208,700 X .02 = $4174 Your tax bill of $2990 is a bargain but then there is Maine's state income tax to consider.
The only way to cut your property taxes is to vote no at every occasion.

 

[300UGUY]

Good point but the flip side to rural property is generally the property tax is MUCH less than being in the city. I know our rural house which is twice the size of the old city house but worth far more AND our property cost HALF as much in property tax. The difference in property tax pays for a LOT of fuel. If we had lived near a rail line, the property tax would have been much higher because of the higher valuations. Even driving far more miles today and with much higher fuel prices we are still ahead money wise because of the lower property tax bill. Now, these numbers are based on what the city house USED to cost in property tax vs what the current rural bill. I am sure the city house has MUCH higher property taxes today.

Another much higher cost in the city is water, sewer and garbage collection. We paid $50-125 a month for water, sewer and garbage years ago. I bet it is much higher now. Just that monthly bill more than pays for our extra cost driving to work. Don't get me started about the sorry a...ss garbage haulers tormenting our dogs and ALWAYS leaving trash on the ground....

Later,
Dan

I used to commute 100+ miles to work. Even with a pretty efficient car, my fuel cost was 6 to 800 per month. And I have to pay for my trash hauling seperate, plus I need propane rather than natural gas, propane is more than 2x. Then my home insurance is quite a bit more, since I am 8 miles from the nearest fire station. I don't really see that rural living is cheaper. My brother lives 3 miles from his workplace in the city, he fills his truck up about every 3 weeks. His taxes are about 20% higher than mine, but he has a paved road, trash collection, cheaper heating, and a fire station 3 blocks away. I like living in a rural area, but low cost it is not.

 

[dave1949]

Rural vs town costs, what are the numbers if you compare the cost of a well and septic system to monthly utility bills in town? Septic systems don't last forever and do need some periodic maintenance. Wells require electric usage and you hope they don't fail. Figure in the cost of money you have invested in the well and septic as lost opportunity too. It could have been earning something, or reduced your mortgage and consequent interest charges.

 

[vtsnowedin]

Rural vs town costs, what are the numbers if you compare the cost of a well and septic system to monthly utility bills in town? Septic systems don't last forever and do need some periodic maintenance. Wells require electric usage and you hope they don't fail. Figure in the cost of money you have invested in the well and septic as lost opportunity too. It could have been earning something, or reduced your mortgage and consequent interest charges.

That is an interesting question. My town figures that town water and sewer are worth $10,000 per house unit and there are sewer and water bills to pay on top of that. Rural lots with a developed spring or well and a working septic are valued at $10,000 also and the owner has to stand all the maintenance costs. A new septic system to meet standard can cost $15,000 or more and wells drilled in the local Granite or blue ledge are not cheap. I honestly don't know who is getting the better deal or will have the better deal in the future.

 

[dave1949]

That is an interesting question. My town figures that town water and sewer are worth $10,000 per house unit and there are sewer and water bills to pay on top of that. Rural lots with a developed spring or well and a working septic are valued at $10,000 also and the owner has to stand all the maintenance costs. A new septic system to meet standard can cost $15,000 or more and wells drilled in the local Granite or blue ledge are not cheap. I honestly don't know who is getting the better deal or will have the better deal in the future.

If a well and septic cost $20,000 to install:
$20K at 4% annual for 30 years earns $24K in interest, plus you still have the initial $20K, $44K total.
$75/month for water and sewer? (I have no idea, really) for 30 years is $27K, plus that is relatively risk free in terms of failure and maintenance compared to a well and septic.

The property tax is a wash if both are valued at $10,000.

 

[ultrarunner]

The market is crazy where I live.

Inventory is short and homes are receiving multiple bids.

Tried to buy my neighbor's home from the bank... 15 people submitted acceptable bids and the bank comes back and invites the 15 to submit their best and final offer.... home was listed at 525k and sold for 800k cash.

I go to refi my home with my existing lender and the appraisal was a joke... they throw out all the high sales.

Then they tell me I have to pay down my loan to make it work and I agree... it is my only debt and I have credit score over 830.

All during the holidays I kept my fax machine on autodail... unbelievalbe how much documentation they require... who would have thought owning free and clear rental property would be an obstacle???

The final straw was this morning. Bank calls and said they have approved my loan accept my loan lock expired 7 days ago and I now have to come up with an extra $3000 to close...

I told them thanks but no thanks... they seemed surprised because everything is approved...

I'm old enough where I won't play their game. I actually feel better this afternoon than I have in anytime over the last 6 weeks.

One thing I learned is to never count on anything happening over the Christmas/New Year holidays.

PS... they have to refund my deposit of $600. I'm not holding my breath... they have 7 busines days to do it.

 

[kenmac]

Where exactly is the "heart of dixie", kenmac?

Alabama

 

[J F]

Thanks. :thumbsup: