Part of working in Cary, NC, real estate is helping people understand the local landscape. I have had many recent conversations with folks who are concerned about the new tax valuations. Many are convinced that their taxes are going to go up as much as 75%.
People are creating all sorts of new concerns, stressing about the effects of reassessment on their property values and the ramifications of new tax values on their home values.
“My tax value is low. How will I explain that to Buyers?”
Well, tax value and market value are not tangibly linked in Wake County. Tell them they are getting a bargain on their taxes.
“The home’s tax value is low compared to the neighborhood. That will affect our loan.”
Again…Well, tax value and market value are not tangibly linked in Wake County. You are getting a bargain on your taxes.
“They have my square footage wrong, because they called the house a 1 1/2 story, and it is a two-story.”
No, it is because they didn’t take the second level out of your two story family room. And, no, 1 1/2 or 2 story doesn’t affect tax value.
“Why did my land go up more than my house?”
Because in an area where building land is coveted, houses often appreciate slower than the land they are on.
Bottom line, if the tax value is lower than comparable properties, you might be getting a tax break.
If the tax value is higher than the market value of comparable properties, you might want to build a case and appeal for a reduction in tax value.
This is all just a big dance to determine the tax base. When it washes out next summer, the final tax rates will be set to generate the revenue that Wake County and the municipalities need to operate.