New Tax assessment

[sinwagon]

Recieved a nice letter from the State of Maryland yesterday informing me that my home is now assessed at double what it was a couple of years ago. From looking at the paper many people will receive the same type of letter this week.
I'm grateful that my home has appreciated, but in checking the state web site I see that my neighbhors land values are significantly less then mine. I'll be appealing.

Just curious on what everyone elses reaction is in regards to the new assessment.

I don't get these damn assessments. We bought our house 3 years (almost 4) ago. It was our first home. They told me "fixed" rate. Well to a person buying a house for the first time, you think that means your mortgage payment will never change right?

Anyway, we bought it at $172,000 it was assessed then at $125,000.
Last year we refinanced, 6% fixed uh yeah right.....Our mortgage started out at $1660 a month then was raised this past month for the insurance increase to $1725. (Does that not sound steep?) then I guess it will go up again for the taxes probably to $1800! Well that was what we were paying when we were financed at 8% so what is the damn point? There is no point in another refi because I wont get better than 6% fixed.

When we refied a year ago, the house was assessed at $167,000 the house was "barely" appraised at $235,000 and now, a year (not even a full year) later your telling me my house is is assessed at $268,000? How the hell is that?

Its probably due to all the commercial building going on around here. Frankly, I am sick of my "fixed" mortgage going up. I'm wondering if I should pay my escrow myself. The mortgage company over inflates their increase my insurance did not go up by much but yet they raised my mortgage by $65 a month to compensate for it? That would mean that just the increase in insurance alone it was $780 per year! My insurance is only $900 a year it was below the escrow amount for 1 month and they raise it $780 per year? that makes no sense!

I can just imagine how much my payment will go up now after this increase.

 

[MMDad]

Where's the option: "Going to sell my home, and rent a trailer, so I can afford to eat when I retire."

???



The fact is, all of our property values have skyrocketed, and now we have to pay more out of pocket.

We can sell, but where in the world do we go?

I won't appeal, like Cletus said, it's simply not worth it (opportunity cost)
That reminds me of a woman in the store last week. She wouldn't buy a sweater because MD has 5% tax (she was from DE...no tax) She said she was going to stop by Christiana Mall and see if they have the same sweater. The tax was only 78 cents!

That's worth $5 in gas! My inlaws live in Delaware. Instead of taxing the consumer, they tax the companies. Almost everything is about 5% more expensive, but no tax. I guess that makes sense.... As long as you are retarded!

 

[Cletus_Vandam]

I don't get these damn assessments. We bought our house 3 years (almost 4) ago. It was our first home. They told me "fixed" rate. Well to a person buying a house for the first time, you think that means your mortgage payment will never change right?

Anyway, we bought it at $172,000 it was assessed then at $125,000.
Last year we refinanced, 6% fixed uh yeah right.....Our mortgage started out at $1660 a month then was raised this past month for the insurance increase to $1725. (Does that not sound steep?) then I guess it will go up again for the taxes probably to $1800! Well that was what we were paying when we were financed at 8% so what is the damn point? There is no point in another refi because I wont get better than 6% fixed.

When we refied a year ago, the house was assessed at $167,000 the house was "barely" appraised at $235,000 and now, a year (not even a full year) later your telling me my house is is assessed at $268,000? How the hell is that?

Its probably due to all the commercial building going on around here. Frankly, I am sick of my "fixed" mortgage going up. I'm wondering if I should pay my escrow myself. The mortgage company over inflates their increase my insurance did not go up by much but yet they raised my mortgage by $65 a month to compensate for it? That would mean that just the increase in insurance alone it was $780 per year! My insurance is only $900 a year it was below the escrow amount for 1 month and they raise it $780 per year? that makes no sense!

I can just imagine how much my payment will go up now after this increase.

Actually your mortgage payment isn't going up, it's your escrow payment that is actually going up. Another refi isn't going to change or effect your escrow in the least. The only options you have are: 1) appeal the tax bill for a lower assessed value on your land or house (see my earlier post about how much fun that was/is); 2) sell; or 3) get the politicians to lower the tax scale on property values.

IMHO, the only one you might succeed in is number 2.... And I say might becuase I hear the rates are starting to climb and values are starting to drop.

 

[sinwagon]

Actually your mortgage payment isn't going up, it's your escrow payment that is actually going up. Another refi isn't going to change or effect your escrow in the least. The only options you have are: 1) appeal the tax bill for a lower assessed value on your land or house (see my earlier post about how much fun that was/is); 2) sell; or 3) get the politicians to lower the tax scale on property values.

IMHO, the only one you might succeed in is number 2.... And I say might becuase I hear the rates are starting to climb and values are starting to drop.

Do you think what I stated is a fair assessment? Isn't the assessment value 25-30% less than the true property value?

I had my house appraised last Feb. for the refi, they pushed it at $235,000 and now they are saying a year later that the assessment value alone is $260,000! That to me, does not make sense.

 

[Hessian]

I appealed once...

In Calvert, it wasn't too grueling and we were reassessed. However. This past assessment has exploded.

85k-155k phased in over three years. Now I did put on a small addition--so I doubt I'll get anywhere.

Land---ouch! They say my 1/2 acre is worth 65k...holy cow!!!!

 

[willie]

Do you think what I stated is a fair assessment? Isn't the assessment value 25-30% less than the true property value?

I had my house appraised last Feb. for the refi, they pushed it at $235,000 and now they are saying a year later that the assessment value alone is $260,000! That to me, does not make sense.

Property is appraised at Market Value. Count yourself lucky as your increase is much less than the Maryland average.

 

[Cletus_Vandam]

Let me answer the questions you make.

Do you think what I stated is a fair assessment?

Actually, no I do not. Sorry. Your post talked about your "fixed rate mortgage" going up based on a higher tax assessment. That couldn't have been more wrong. You always have the right to pay your taxes outright and avoid the mortgage company having any escrow account. That would give you a mortgage payment today that theoretically you could expect to maintain for the life of the loan.

Isn't the assessment value 25-30% less than the true property value?

No, as Willie indicated, it is based on what Market Value of your property, not the appraisal, not what your neighbor sold his place for, not what you think it's worth.

I had my house appraised last Feb. for the refi, they pushed it at $235,000 and now they are saying a year later that the assessment value alone is $260,000! That to me, does not make sense.

The Appraiser "Pushed-it" based on what [your assumption or theirs]? Appraisals are based on a large part of speculation by the Appraiser. It is their best guess on the value, given several of the factors that I listed above, and then some.

I know from past experience, the Appraiser knows ahead of time the value of the loan you are trying to get and they do their best to get your appraisal where it needs to be (within professional reason, of course, they are licensed).

Also, what you are saying the appraisal was $235K last year and the assessment is at $260k a year later... That doesn't sound too far off considering the price increases seen.

Believe me, I have been hit very hard with taxes and there's little that can be done about it. I built nearly four ago [long before the property and housing boom] and my property is worth (in Market Value and tax assessment) double what I paid.