Tax Collector Records Are a Great Source to Confirm Value

 

We all know that revenue collected by Counties, has dropped sharply over the past few years because of the drop in real estate values. Most Counties list in their public tax records the year-over-year changes in property value.

By researching this information on the tax record for a particular piece of property, an agent can determine the % drop in value over the past few years. Depending on what the trend is, this information can then be used as proof of what is happening to values when the agent is talking to a buyer or seller.

Consider the following possibilities and what they mean to either buyers or sellers:

 

–      Assessed Value has dropped 10% per year for the past 1, 2, or 3, years- This information could be shared with your seller to verify potential depreciation during the coming year.

–      Assessed Value dropped then stabilized– This information could be shared with a buyer to justify that additional depreciation is unlikely, so the risk to buy now at appraised value is compelling.

–      Assessed Value dropped over the past few years, but has increased in the past year– This information should be shared with your buyer to stimulate immediate action as it indicates that the bottom of the market has come and gone. Any additional delay will likely lead to higher prices for the buyer.

–      Assessed Value remained stable– The could be shared with either the buyer or seller. It shows both that the price uncertainty that exists in the overall market does not apply to their property (or neighborhood). For some reason, their situation is an exception to the market.

 

Tax Information can be a powerful tool when presented properly by an agent. Keep in mind that Tax Revenue is critical to local governments and they won’t reduce assessed value unless they have to because of the loss in revenue that occurs from the reduction. This information should be printed and shared with either buyers or sellers as part of your Spaced Repetition strategy.