March 28th, 2011 Categories: Real Estate News
“According to an industry trade group, more than 60 percent of U.S. homes are currently over-assessed as a result of falling home valuations and inaccurate county records.“
Barbara makes the point that 30-40% of property assessments are inaccurate. These are not malicious inaccuracies but errors or assumptions made on old information. For instance, the three most common mistakes are:
- the number of bedrooms
- the number of bathrooms
- whether or not a basement has been improved
A good example is the townhouse next door to us. The previous owners turned the two bath, three bedroom upstairs into a one bath, two bedroom space.
Was that information accurately recorded for an adjustment on their assessment? I don’t know and if I were my neighbors I wouldn’t count on it. Instead, they should ask to see the ‘property card’ on their house. This will tell them how the property was assessed and what comparables were used.
The other point that Barbara made was that physical (on site) assessments are not done every year and have not kept pace with the downturn in housing prices. At the same time, cities and towns need revenue. Guess who is likely to be caught in the middle?
For more information and help, check out the National Taxpayers Union.
And just a final side note, Barbara Corcoran also appears on ABC’s “Shark Tank” and is the one who made the wise decision to invest in Pork Barrel BBQ, coming soon to Del Ray!
***this interview actually ran in April 2010 but is still totally relevant in today’s market