property taxes

Buying a Historic Home? Consider These 4 Things

June 13, 2017 By Chris

Many outsiders call to mind images of multi-story condos and mid-century ranch style homes when they think of Florida architecture. And while these styles are prevalent in the Florida real estate market, there are quite a number of historic homes within our communities. These homes are pieces of living history and are bought and sold every year. If you’re planning on buying a historic home or one unexpectedly swept you off your feet, consider a few points before you sign the agreement of sale and put down a deposit.

What makes a home historic?

Age alone doesn’t determine if a home has “historic” status. A home is only considered officially historic if it is part of the National Registry of Historic Places or part of a similar local registry or homes that are located within a designated historic district. These homes will have historic easements attached to their titles that places certain conditions and obligations to all current and future owners.

How much does a historic home cost and how can I finance one?

The value of a historic home is just like any other property, it is dependent on a myriad of factors including the size, condition, and location. A historic home is excellent condition in a desirable area could end up costing more than a more recently constructed home. Financing is again determinant upon a number of conditions. If the home is move-in ready, securing financing may be as simple as financing any other home. If the home needs extensive repairs however, you may not be able to secure a conventional, FHA, or VA loan. There are other options available though include a 203k mortgage or a Fannie Mae HomeStyle rehab mortgage.

Ready to Buy a Historic Home? Consider There 4 Things

Historic gem in St. Pete we helped sell in 2015.

Is it difficult owning a historic home?

Owning a historic home does come with unique requirements based on the historic easement. Things like paint colors and landscaping may be dictated within the easement restrictions. When repairs need to be made you may be required to repair with materials from the home’s original era, which can be pricey if the item is large or a rare find. Utility bills may be higher depending on the type of fuel needed to heat the home, the quality and level of insulation, and if the home can be efficiently cooled.

What are the benefits of buying a historic home?

There are some surprising benefits to owning an official historic home. Many states and local municipalities offer tax incentives either in the form of lower property taxes and/or low-interest loans or grants to aid repairs that protect the historic aspects of the home. Buyers may also find that historic homes offer unique architecture and amenities newer homes no longer offer. If you purchase a home on the National Registry of Historic Places you may be able to write off the cost of repairs on your tax return. You should contact the National Park Service and your accountant to see if your home qualifies.

If you’ve fallen in love with a home that’s older than most don’t let the “historic” designation scare you off. With the right amount of due diligence you could own a piece of history that is also the home of your dreams.

How to Appeal a Property’s Assessed Value

September 20, 2016 By Chris

Every August, each county tax assessor in Florida mails out a TRIM notice to property owners. An increase in property taxes is usually an unwelcome surprised for most homeowners. Property tax assessments are calculated based on the County Appraiser’s determined fair market value of the house less any assessment differentials and exemptions. The amount is called the “taxable value” and is then multiplied by the millage rate to calculate the next year’s taxes. A homeowner that hasn’t made improvements to their property or seen a drastic increase in property value may want to appeal a property’s assessed value. There are two ways to appeal a property’s assessed value and in turn the amount of taxes due.

How to Appeal a Property's Assessed Value

A VAB Filing

The most common way to appeal a tax assessment is to file a VAB (Value Adjustment Board) notice with the county tax assessor. Property owners have twenty-five days from the date of mailing of the TRIM notice to give notice of appeal. A qualified member of the assessor’s staff will meet with the homeowner to review the county’s appraisal. The owner will have the opportunity to raise his or her disputes at this time. It’s possible that the disagreement can be settled during this meeting.

If a resolution is not reached during a meeting, the owner can petition the VAB for a hearing. Fifteen days prior to the hearing date, the owner must provide a list and documentation of any evidence he or she intends to use during the hearing. The owner can request, in writing, for the same information from the property tax assessor. A final determination is made after the hearing, within twenty days. The owner will receive written notice of the decisions, any changes made, and the basis for the decision.

A Circuit Court Lawsuit

Any Florida property owner can file suit to contest a property assessment with the Circuit Court within the county the property is located. The owner does not need to have previously petitioned the VAB. A Court filing must be filed within sixty days of receiving a TRIM notice or within sixty days of a decision by a VAB. Lawsuits disputing assessments must list the County Property Appraiser, Tax Collector, and Director of the Department of Revenue as defendants in the suit. The burden of proof that an adjustment is necessary is on the owner and the owner has the opportunity to present witnesses during the trial. All taxes must be paid current and if a dispute is found in favor of the owner, a refund will be issued.

Time is of the essence no matter what route a homeowner chooses to raise their dispute. It’s important to review the TRIM notice for accuracy and any changes as soon as it is received. A homeowner is not required to hire an attorney or other third party to appeal a property’s assessed value but may find it of great use and reassurance for complicated cases. We can help you find the most accurate and current information for comparable home values to help in your assessment appeal.

Why Are the Assessed Value and Listing Price of a Property So Different?

January 27, 2015 By Chris

When you’re searching for a home, it’s only logical that you will review the tax records of a property you’re interested in to determine what the yearly taxes are as they will make up a portion of your mortgage payment every month. In your research you will come across a value assigned to the property, commonly called the assessed value. This is a dollar number that the tax officer will multiply against the current tax rate to determine the yearly taxes due for each individual property.

You’ll notice a trend when reviewing assessed values for properties that are listed for sale…often the assessed value doesn’t match up to the listing price of the property. This can cause a lot of confusion and contention for buyers and homeowners alike. If the assessed value is lower than the listing price, buyers may wonder why the seller is trying to inflate the price and homeowners may wonder if their home is worth as much as they thought it was. Likewise, if the assessed value is higher than the listing price homeowners may over-price their properties. So why do the values vary and differ so much and so often?

Listing prices and appraised values are based on a myriad of market variables. The economy is an obvious factor as is the local market. Is the home supply high or low? Are buyers eager to purchase properties in an up-and-coming neighborhood or are sellers trying to unload properties because of foreclosure? Mortgage lenders rely on these factors as well as the current status and condition of the home (as reported in an appraisal) to see if the listing price is an accurate reflection of the home’s value.

Tax assessors on the other hand take a different approach to property values. Since market trends can change often and assessments aren’t done every year, tax assessors are more concerned with the tangible features of a property. Tax assessors are charged with evaluating each property in their district, usually with an in-person visual inspection. They are looking for habitable square footage and any additional features to the property that would make it more value (pools, fences, developed land). If a representative is unable to inspect the inside and outside of the home first hand, the assessor will usually rely on a comparable analysis of similar models of the home in the neighborhood to determine the value. Many tax assessors also rely on a multiplier, usually anywhere from 60-80% of the comparable value, to determine the final assessed value.

It’s important that you don’t make a decision regarding the sale or purchase of a property based on the assessed values alone. Determining a fair listing price for a property is the job of a licensed Realtor. A Realtor can evaluate the current market conditions in your area and price a property accurately for sale or purchase.

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