This week, real estate tax revaluation notices started landing in the mailboxes of Mecklenburgcounty real estate owners. Condo owners will get their notices in March 2011. Some homeowners are angry by the value placed by the county while the vast majority of property owners are confused. Here's a quick Q&A of the most frequently asked questions we have receive regarding the real estate revaluations.
Q. My new value dropped. Will this affect my ability to sell my home?
A. ABSOLUTELY NOT! First off, be glad your value dropped because that means your property taxes are going down. The real estate you pay in Mecklenburg county is based on your Property Valuation multiplied by the real estate tax rate. The previous value was set in 2003 for most homes and in some cases, was low for 2003.
But to your question about it affecting value; it has no effect. Real Estate Appraisers do not consider tax value in their calculations because Real Estate Tax Valuations are a pulled-from-air price. The value is assigned based on the overall real estate activity in an area. Here's a link to the Mecklenburg County revaluation site which shows your value was set by your geographic location and the sales trends there.
A. Most likely YES. The Mecklenburg revaluation form has the instructions on how to file a formal complaint or challenge of the value. Almost any real estate agent would be happy to provide you with recent sales in your neighborhood of like homes for you to use in your challenge. If you saved your appraisal from your recent purchase, use that too. Remember, this was a BROAD valuation where no one actually came by and considered your homes attributes. Therefore, there's a high margin of error.
Q. Why did my value go down?
A. It is likely that you live in a newer home that was constructed after 2003. Chances are thatMecklenburg county assigned a value that was too high after construction and / or values in your part of town have fallen.
Q. My value is lower than it was previously. Does this mean my property taxes are going down?
A. Gee…that'd be nice! Unfortunately, you'll need to hold your breath until summer when Mecklenburgcounty and Charlotte city council (or your local town council) will meet and set their new tax rate for 2011. If the rate stays the same or goes lower, your property taxes will decrease. If you pay your taxes out of an escrow account held by your mortgage company, you will receive a check at the end of the year after your taxes and insurance have been paid and your new payment will be slightly lower.
Q. My home is on the market for sale and my value came in really too high. I know my home isn't worth that but should I fight it? Will it hurt me?
A. Consider that you have a limited time to challenge your valuation. If you don't challenge and you are not successful in selling your home, you will be locked in paying too much in property tax on your home. If you like paying overpaying taxes, don't sweat it. However, if its an serious error, consult the revalwebsite and file a formal challenge.
Q. What are the current real estate tax rates in Mecklenburg county?
A. As of right now:
|Unincorporated County||1.0433 per $100|
|If Inside City Of Charlotte||1.2973 per $100|
|If Inside Town of Cornelius||1.1137 per $100|
|If Inside Town of Davidson||1.2037 per $100|
|If Inside Town of Huntersville||1.1287 per $100|
|If Inside Town of Matthews||1.1712 per $100|
|If Inside Town of Mint Hill||1.1137 per $100|
|If Inside Town of Pineville||1.1587 per $100|
Q. I want to buy a home in the town of Matthews (Mecklenburg county) and I am pre-qualified to purchase up to $200,000. Will I be affected by the revaluation?
A. Potentially. When a reputable lender offers a pre-qualification / pre-approval to a prospective home buyer, they estimate the amount of taxes you will pay each month as a part of your payment. If$200,000 is your absolute ceiling, higher taxes would reduce that ceiling by 10%. This is also why it's never a good idea to buy at your affordability ceiling as taxes can fluctuate which can cause a home that is affordable one day to be a nightmare on your budget the next.