No doubt about it, the recent hot news in Raleigh real estate has focused on the new Wake County property tax valuation. Are you wondering if your home could really be worth the tax value the Wake County Tax Office has assigned to your property? If so, you are not alone. My phone has been ringing off the hook and my email box is jammed with messages from people who can’t believe the new tax value Wake County has assigned to their property. If you have questions too, click or call me. I would be happy to help you.
Meanwhile Here is What I Know
I have been selling real estate in Raleigh for many years and I have experienced this phenomenon three times in my career as a Raleigh real estate agent. Every 7 years the Wake County Tax Office re-assess all property tax values. On the 8th year the tax values change. Many other areas change tax values each time a home is sold. The system adopted by the Wake County Tax Office is not in-line with true market values. Here is the problem, our Wake County tax system can be very confusing because many people tend to believe tax value equals market value and it doesn’t. It’s a bit shocking for everyone when they get hit with a 7 year increase in tax value. Here is the “good news”- your tax rate will come down in June and your new tax value will remain the same on your home for another 7 years. It doesn’t matter what price you sell your home for in the next few years, it will not change the tax value. If you’re wondering how much your Raleigh home is worth in the current Wake County real estate market, learn more here.
The Wake County Tax “Fuzzy Math”
Before you break out the calculator and start to crunch the numbers on your new tax value against the current tax rate, keep this in mind. Every seven years the tax value typically goes up while the tax rates actually comes down. This means that even though you will now be paying more due to the increase in value this will be offset by a lower property tax rate. Allow me to offer an example. Let’s assume your original tax value was $300,000. With the current tax rate of 1.113%, your property tax liability was $3390. But now your new tax value is $350,000. But remember, the tax rate is projected to decrease from 1.113% to 1.05735%. Hence $350,000 times the new rate of 1.05735% will be $3700 per year. Unfortunately any way you compute it, your property taxes will increase. If you have an escrow account, count on receiving an adjustment notice early next year.
Stay-tuned! Help is on the way!
On my next Blog I will offer you some timely tips how to fight the new tax value assessment. In the meantime, tell me about your experience with your adjusted tax bill. How bad were you hit by the increase? Have you thought about appealing the new assessed value?
Wishing you all the best,