So i am from Maryland and looking to move to Florida. On zillow i see tax assessments of properties listed at 1.6m are like 900k. Is that common or is it the prices are way too high right now? Is it wise to buy a house in FL or should i try something in Virginia? I am just trying to get out of maryland.
Hello David, where about are you looking in Florida, east coast, west coast, central, northern?
I am in NWFL. The tax assessment rarely equals the actual market value here. I would go so far as to say never (I have not looked at every single property). That said, yes...prices are high. Florida is one of the states that has a huge influx of people moving in after COVID. Surprisingly, many areas are less expensive than other states like California, Washington..etc.... I have buyers here that have put in 10 offers. Several buyers. If you are concerned and don't want to feel like you are overpaying, buy something that can be fixed up.
hey david, with a little more information on the property we can figure this out. If you are looking at the lower 5 counties you’ll likely pay a premium as you get closer to the Miami area.
I would verify “why the tax was so high in that area?” other homes’ profiles might reveal something.
I forget if Maryland has homestead. NEVER go by the current tax assessment when purchasing in Florida. You will be re-evaluated based on your purchase price and that number can be extremely different from the previous owner who may have been homesteading (and doing save our homes caps on increases each year). And if considering investment property, all the property value increases over the last few years will definitely cause property tax increases over the next few years.
@David Jackson @Kristin Kiddy Tax assessments are not changed due to your purchase price. Assessed Values are determined by comparable sales from the 4th quarter of the preceding year.
Property tax assessments Always lag the market. The major reason for large differences in the “assessment values” being well below market prices is FL’s Save Our Homes law which caps owner occupied assessments at a max 3% increase per year, as long as you live in the home.
If you look at the tax property data, there is a separate “market value” amount which will be much higher than the artificially reduced “assessed value” due to this cap.
Thanks for the clarification @Wayne Brooks .
Thank you everyone.