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A Look at Tax Assessment and Overpaying

Jay McGee of Real RVA has  a post up about Tax Assessment and the possibility of overpaying. Below are some examples of houses in our neighborhood and in the original post he talks about the appeal process.

A few weeks ago, I helped some friends buy a house near Ginter Park for around $175,000

Here’s the glitch: the city is assessing the house at a value of $339,000.

Hmmmm…  let me do the math…

Sold in the last 6 months:

5030 Devonshire

Tax Assessment: $217,000

Sold: $175,000

Annual Overpayment: $504

4603 Forest Hill Ave

Tax Assessment: $276,000

Sold: $240,000

Annual Overpayment: $432

 

4 comments

  1. #1 • Sundagger •

    People who pay by mortgage may also want to check their account. I’m told that the city accelerated the second half payment for 2012, so that people paid three halves in 2012, and will pay only one half in 2013. That will have significant impact on interest deductions, paxes paid, and escrow balances.

  2. #2 • mike swain •

    The Devonshire home was a foreclosure so the buyer most likely bought for less than appraised value. The Forest Hill home tax assessment is now $260k and not $276k as stated. Assessor’s office has a note that the purchase was an aberration, below market value. Purchase price was about the same as the 2004 purchase price. While not a fan of real estate assessments the current assessor is far better and more fair than the previous one. Cases in point, police chief Andre Parker who got a deal on his assessment in Westover Hills West and the previous school board chairman down the street from me who’s 4,300 SF brick house was asessed less than our 2,200 SF vinyl sided house in 2005.

  3. #3 • whr •

    Of course in some instances houses may actually be worth more than someone paid. It may be that they just got a good deal. But that is probably less often than not.

    Plus the City doesn’t have the manpower to look into the specifics of a house. Kitchen upgrades, internal systems, etc., so in some cases when someone fixes the house up it will be worth that much.

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