Nashville area Realtors! New appraised values through the roof!!

Nashville area Realtors! New appraised values through the roof!!

Miami, FL · Member since 2017 · 12 posts · 0 votes

I was hoping to get some insight from real estate professionals regarding the following. 

During the past few years home prices in Nashville have skyrocketed. 

This year the County Assessor issued new Appraised Values and as you can imagine they are ridiculously high and out of control. At least for the people that I have talked to who are home owners, almost all have seen HUGE increases in appraised values from the county. 

This is great if I am planning to sell the home, then public records shows a higher value for the home, but at the same time this will increase my taxes by $600 per year. 

I am currently renting this home, but I may or may not be selling the house in the next year or so depending on a few things that need to be sorted out still. So that's the tricky part, that I am uncertain whether I will be selling or keep renting. 

So, there is a deadline to try and get the appraised value reviewed in hopes of lowering their appraised value and lowering the taxes some. There are comps that I saw that would help my case, but I am not sure if in the case I am successful in getting a lower appraisal, that it may come back to hurt me if I end up deciding that I will be selling the home next year, for example.

I have heard that realtors do not pay much attention to the appraised value by the county since it is usually off and does not reflect the actual value of the home. So if I decide to sell, it would not matter if the home has a lower value for tax purposes in the case that it is much lower than the potential listing price. Am i correct assuming this? 

On the other hand, having a higher appraised value can only help a listing, but paying the taxes on the ridiculous new appraised value is a tough one. 

What do you suggest I do? Should I attempt to lower the appraised value to pay less tax or leave this inflated appraised value as is?

Sorry for the long post, I appreciate any insight on how to proceed. 

Thanks

0Reply
30 views

Most Popular Reply

Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
9y

@Pj Holmes The tax appraisal doesn't matter, your comps are going to be closed properties. 

My personal residence had a 49% tax increase. True story.

I'll buy the home in question if you are looking to sell. 

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    9y

    @Pj Holmes The tax appraisal doesn't matter, your comps are going to be closed properties. 

    My personal residence had a 49% tax increase. True story.

    I'll buy the home in question if you are looking to sell. 

  • Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
    9y

    Exactly.  As @Luka Milicevic mentioned, a market value appraisal and a tax appraisal are two different things.  If you want to dispute the tax assessment, go for it.  And in fact, some buyers do seriously consider the amount of taxes that they will pay.  But when you decide to sell, unless the taxes are significantly higher or lower than other similar properties, it will be the fair market appraisal that you'll be more concerned with.

  • Real Estate Agent · Denver, CO · Member since 2015 · 125 posts · 43 votes
    9y
    Pj Holmes agree with all of the above. We just sent in our tax increase rebuttals on properties in Denver & San Antonio. With Insane value increases it is always worth a try with lowering your property taxes. It will have zero negative impact on your ability to sell the property for market value.
  • Miami, FL · Member since 2017 · 12 posts · 0 votes
    9y
    Originally posted by @Brendan H.:

    Pj Holmes agree with all of the above. We just sent in our tax increase rebuttals on properties in Denver & San Antonio. With Insane value increases it is always worth a try with lowering your property taxes. It will have zero negative impact on your ability to sell the property for market value.

     Thank  you all for your comments. 

    Did you send a CMA or BPO or something professional like that? My county provides a tools to look up comps, but not sure if I have a better chance at getting the appraisal lowered if I send in something made by a real estate professional vs what a simple mortal home owner could. THanks

  • Miami, FL · Member since 2017 · 12 posts · 0 votes
    9y
    Originally posted by @Aaron Lovett:

    But when you decide to sell, unless the taxes are significantly higher or lower than other similar properties, it will be the fair market appraisal that you'll be more concerned with.

     Hi Aaron, 

    What do you mean with this statement? Let's imagine that I manage to lower the taxes significantly than other similar properties, would this affect the listing in any way? 

  • Realtor · Smyrna, TN 37167 · Member since 2013 · 248 posts · 147 votes
    9y

    In my experience, the taxes don't affect the listing price because they are such a small proportion of the market value of the property.

    Take a real world example:  I'm looking at two properties listed right now in the same neighborhood, but slightly different houses.  Both are approximately $300,000 homes.  Taxes on one are $1900, the other $1700.  That amounts to a $17 dollar difference in monthly payment.  Folks shopping for $300k homes usually aren't worried about $17 a month.  They're more concerned about which home is better for them.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.