If you are an existing homeowner, the drop in home values in our country isn't really bad unless you are trying to sell. Think TAXES!!!
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Dear BuildingCredibility.com reader:
Everyone seems so upset that property values are dropping the way they are. But if you look at WHO is actually most upset by all of this, it is homeowners who are trying to sell their homes or homeowners who are trying to refinance their homes. These people, especially if they bought homes within the last two years, have a good chance of being upside down in their mortgage. While their situation is unfortunate, it doesn't mean that lower property values are a bad thing for everyone!
I live in Nampa, Idaho, and am paying a fairly high amount (over $3,000 annually) in property taxes. This is due to a couple main reasons...a high levy code where I live AND my property value appreciating significantly in the last two years. I love where I live and have no plans to move...so for me, lower property valuations are a good thing!
When Canyon County re-assesses my property value higher in the Fall (which I have no doubt they will do), I plan on having a couple Realtors I work with research current sales comparables to see if my current market (appraised) value is lower than Canyon County's opinion of my homes value(assessed). If market value is lower, I will file for a reduction in my home's assessed value by Canyon County to lower the amont of taxes I will be paying.
Even though property taxes you pay are deductible...you are still paying for them! Decreasing the amount of tax liability you have on your home's assessed value is in your best interests. Wherever you live, make a point to check and see if recent sales comparables will put your home's appraised value lower than your tax assessed value. Your local Realtor will usually help you do this research. If it is lower, then go to your local taxing authority and start the process to appeal your higher assessed value.
If you have additional questions about housing prices in the Boise area, or are interested in talking about a mortgage for your home, feel free to call or email me at (208) 880-0316 and eric@ericsloans.com. You can also visit my website at http://www.ericsloans.com.
Regards,