Wednesday, March 3, 2010
What is your house worth?
Seems like a simple question that could have been answered within recent years by simply looking at the tax assessment. But, that's no longer the case for a variety of reasons.
One of which is the fact that the crashing residential real estate market still has not found a bottom in most communities. Meaning that, property values are falling quicker than jurisdictions can re-assess the property to a more accurate value.
Add in the fact that, on a basic revenue gathering level, it is actually against the jurisdiction's best interest to re-assess values right now since that will almost always result in reduced property tax receipts and you can see a real potential for incongruous results.
Which leads to this story from the New Orleans area that explains how today's rapidly changing (or, better stated, decreasing) home market is resulting in some strange disparities.
--Chad Emerson, Faulkner U.