We're Close to The Bottom. Right?

Holy smokes! Did you get your 2007 assessment yet?

I did.  Received it last week and boy was I shocked.

Maureen Francis over at miOaklandCounty.com has been posting on Proposal A and the pop-up tax and the effects it has had and will have on real estate this year in Michigan.  My  concern, after seeing our assessment, is what the future will bring to our municipalities. 

While Maureen posits that we will see a rise in our assessments, but hear and see nothing but bad news in regards to the 2006 real estate market, our assessment dropped 6%! 

From the Dickerson article Maureen references:

First, there’s the fact that the property assessments homeowners will begin receiving next month are based on home sales during a 24-month period that ended almost a year ago, on April 1, 2006.

Lime Kitty is Not Amused! Sheesh!  That means that for the 24 months preceding April 1st, 2006, my assessment value dropped 6% or more.  While I could believe that for 2006 and maybe parts of 2005, I’ve got serious quadries about the 2004 market.

Anybody else got a feel for this?  Have you gotten your assessment and been surprised?  What future scenarios do you see as a result of declining assessment values?

The immediate concerns that I see, will be the continued shortfall in community coffers.  With assessed values declining, it seems to me that appraisers have had and will continue to have to utilize an extremely sharp pencil when it comes to valuing a property’s worth.

3 Responses to We're Close to The Bottom. Right?

  1. My assessments actually went up in Beverly Hills. Did not get the notice in Birmingham yet to know what happened there, but I am predicting up. Home values in Beverly Hills did not go up, but the assessment did. I will have to do the math for the percentage.

  2. This issue has both good points and bad points. One of the positives that I see is that the area property becomes more attractive to possible buyers because of lower taxes. On the other hand I see your point in the reduction in public funds. The Detroit area has attempted to deal with this issue by lowering taxes in a few neighborhoods and found it to be a public relations issue of fairness and revenue loss. The assessors by law have to stay with in limits based on market value, unless they do a mass appraisal reassessing the community as a whole and both appraisers and real estate agents work with assessor numbers to verify their own numbers.

    The Detroit area, not Oakland per say, but Detroit already has an exiting populous problem per US Census numbers from the last ten years, which relates to loss revenue so any additional hits could have substance for government budgets.

    In lower Southeast Michigan we have seen reductions in assessments for the most part but have also seen increases in some areas while property values have stalled or dropped. In land lakes have really felt the tax hits, some of which are DEQ mandated. If homeowners do want to contest the assessment with the Tax Tribune then they should get an appraisal showing the reduction in market value for their property. Apella provides these types of appraisals so that it is disclosed here.

    In the mean time, I hope that the government bodies can work to generate a commercial and industrial base that will rebuild the tax base. If they cannot do that then may be a bake sale is an option. I hope that they do not try to pass the burden onto homeowners just to spare our tired real estate market additional grief

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