Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
Good Morning,
My properties’ city assessments (Milwaukee, WI) are increasing and I guess this will be followed by an increase in tax. This includes my primary residence. I don’t plan on selling them anytime soon so I will dispute the city assessments to reduce my taxes. I do plan to refinance to obtain lower interest rates. One of the properties is rental and was purchased about a month back for much less than the city assessment value. I will add this to make my case.
Here’s what I want to know - What are the disadvantages of reducing city assessments? During refinancing, I know a new appraisal will be ordered. How critical is city assessment value for refinancing?
Real Estate Broker · Milwaukee, WI · Member since 2014 · 338 posts · 129 votes
12y
I don't believe the city assessment will have any negative effect on your refinancing. The bank only looks at the appraisal that they order.
The only time the lower assessment may come back to hurt you is when you are looking to sell. I bought a rehab in Wauwatosa and the year I bought it the assessment dropped ~$40K. We bought it for $40K under the assessment value but then when going to sell it was priced $50K above the assessed value. We ended up having the first offer fall through because of the assessment being lower then the listing price.
We tried to explain that the city is unaware of the remodeling that happened and once they are the assessment will increase, but in the meantime enjoy the lower taxes. Didn't end up working out.
Long story short the lower assessment shouldn't affect your refinancing but if you have any plans of selling in the future be aware that sellers do look at the assessment.
Investor · Cedarburg, WI · Member since 2013 · 23 posts · 4 votes
12y
No need for a new appraisal. If you've only had it for a short time it can be used for one year I believe. Also don't miss the cut off dates to appeal the assessment. (I did due to family emergency)
Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
12y
@NA Burkart , I have missed the deadline last year for my personal residence and so the city assessment is under review for this year. Yes, I am careful this time not to miss the deadline.
Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
12y
Hi All,
Thanks for your suggestions. The city assessment on my personal residence was reduced by 22%. I am happy about that as I am not planning to sell it anytime soon. I missed the deadline last year but this year they considered my last year's city assessment dispute.