Home arrow Resources arrow AJC Articles arrow Estimating Value of Home is a Tricky Business - 2010-02-14

Your Cart

Show Cart
Your Cart is currently empty.

Login

Estimating Value of Home is a Tricky Business - 2010-02-14
ESTIMATING VALUE OF HOME IS A TRICKY BUSINESS

Last week I reminded owners of property in DeKalb, Hall, Gwinnett and Newton that they have until March 1 to request a reduction in property value for tax purposes. Most other Georgia counties allow owners until April 1 to file a "Taxpayers Return of Real Property." The form you need is PT-50R, and it's free at money99.com. One of the blanks on that form requires you to estimate the value of your own property.

So what's my house really worth?

The answer is, of course, exactly what someone is willing to pay for it. And in today's slow-as-molasses real estate market, it is particularly difficult to find evidence to support your estimate of value.

While there is no penalty for guessing low, you can save yourself time and aggravation by gathering evidence now to support your estimate.

They're called comps, also known as comparable sales. These are recent sales in your neighborhood of homes similar in age, size and condition to your home. Three recent comps should be your goal.

If you live in a large subdivision of identical homes, your job is much easier. But if you live in a diverse community of many different home sizes and ages, your job becomes much more difficult. The endless quest for meaningful comps is the heart of the appraiser's job, and they make use of many tools to assist them.

First, you might want to visit the website Realtor.com and obtain a free instant Home Value Report. When I searched my house, it only showed sales that were more than six months old, but at least it was a starting point.

Next, you can visit Zillow.com for a more in-depth look at sales in your community. Interestingly enough, this site rendered a very different set of comps for my house, although all were factual.

You may find that there are more comps than you can really handle, so try to stay close to your house geographically, in age and condition, and especially in size. A four bedroom two story is not comparable to a two bedroom ranch on a slab.

Finally, it may be wise to consult a real estate professional. Through their membership in the multiple listing service, agents have access to completed sales data maintained by the counties themselves, so you know it is accurate and complete. Agents call their evaluation a "competitive market analysis," or a CMA, and routinely provide them to potential sellers.

One final point - if you miss the filing deadline, you are stuck paying property taxes for another year at what is likely an unrealistic valuation of your house. My advice is this: if you think there is any chance that your home's current valuation is too high, file a property tax return as soon as possible. By doing so you lock in your rights to present your evidence later.

Next week: Do You Need to Pay for a Formal Appraisal?
 
< Prev   Next >

Upcoming Events

John Adams Presents


LANDLORD SURVIVAL TRAINING

with John Adams
Tuesday, February 28th

Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.

Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.

Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.

For more details and to register click HERE

PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th

One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.

As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.

At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.

In this 3 hour information packed seminar, John will teach you how to:

1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary

If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.

For more details and to register click HERE