2012 is the mid-point of the Wake County property tax assessment cycle. We reassess all properties every eight years. Last full property tax reassessment was performed in 2008, and the next full reassessment is scheduled for 2016.
Volatility in the Triangle housing market has raised the question of whether such a cycle is adequate. When some real estate values dip or increase more relative to other properties, should assessed values be corrected to be accurate? What costs would taxpayers have to be willing to absorb for more frequent reassessments?
The N&O had an article today, regarding the quandry, and the issue in Orange and Chatham Counties where property tax reassessments may possibly be delayed to avoid increasing the tax rates to maintain revenue.
It is more politically feasible to delay assessment than to be the one who voted for a tax rate increase, even if the bill stays the same…
Wake County Property Tax Pro-Ration with video blog
Real Estate Closing and Wake County NC Property Tax Details
Wake County Property Tax Proration at Closing
It really isn't all that complicated.
Seller pays property tax through Closing, the date of deed recordation.
Buyer pays the balance for the year starting from the day after closing.
Wake County Property Tax year is the Calendar year, January 1 through December 31. Your Closing Attorney will divide the tax bill by 365 days, and multiply the result, the property tax per day by the number of days for which each party is responsible.
And the total is the party's share.
If the tax bill has been paid already, Buyer will credit Seller at settlement for their share.
If the tax bill has not been paid, Seller will credit Buyer for their share.
It seemed to be worthy of a quick breathless 60 Seconds in Real Estate Cary NC video blog:
Wake County Property Taxes do not always reflect true current market value.
We see it routinely in the Cary area. Listing Agents shout, “Priced $Thousands below Tax Value!!”
It doesn’t mean much. If the difference is in the tens of thousands, then a Buyer might wonder if the Seller should have appealed the assessment and tried to have it lowered to a reasonable affordable number.
Wake County Property Tax reassessments are performed every 8 years. The last time was in 2008, with the next reassessment scheduled for 2016. Until then, Wake County will not adjust tax values because of market conditions or soft sales prices.
I have spoken to many homeowners who are afraid to appeal taxes, as they believe that a lower assessment may hurt their home value. That is an error, I believe. If one is contemplating selling their home, a Wake County Property Tax bill that is excessive can discourage a Buyer.
And I got into it in a 60 Seconds in Real Estate episode:
This mortgage calculator, from the good folks at CalcMoolator can be a big help to you in planning your finances, and knowing what it will take to buy that Cary home. As a Buyers Agent, I see many real estate buyers who haven’t yet talked to a lender, and have no idea how affordable their home payment may be. Please note, your Wake County Property Tax and Homeowners’ Insurance premium included in the total estimated mortgage payment will vary depending on your property value and which Wake County town you are in.
Also, I expect to offer several more specialized real estate calculators on this page, so check back to see what’s new.
So, I have been working hard telling folks how the Wake County Property Tax reassessment works. And how to appeal their new tax values.
The other shoe dropped for me this week. I got the response from Wake County that my appeal was denied. No adjustment will be made to my over-assessment.
I delivered quite a package to Wake County. Recent sales. Similar models that have expired as listings, unsold at values lower than my assessment. Comps that indicate that Wake County has assessed my home at a higher per square foot value than any home has ever fetched in my neighborhood. These are cookie-cutter tract homes, with my model represented throughout the neighborhood. Easy to comp.
Still, I’m assessed at $147/square foot, with an active railroad right-of-way (can you say “Negative adjustment to value?”) adjoining my lot. Nothing in my neighborhood has ever brought over $127/square foot. I listed and sold that house, and somehow think I have a clue as to values.
I asked Wake County to revalue my home at $133/SF, allowing 5% appreciation on that $127/SF. Denied.
Sweetie asks if I will appeal? I will be making the phone call tomorrow.