Real Estate Market - Info for those Interested!
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Real Estate Market - Info for those Interested!
Foreclosure Rate May Affect Home Values, Taxes
By KRISTA KLAUS
Published: December 10, 2008
The rapid rate of foreclosures in Florida is starting to change the way county property appraisers do business, and the result could mean a change in home values and property tax bills next year.
The long-held wisdom of county appraisers was to ignore foreclosures when setting property values, but that's about to change, said Rob Turner, Hillsborough County property appraiser.
"This is a market that most everyone hasn't ever seen who's in this business," Turner said. "It screams for a new focus and guidance on how we're going to manage this."
Turner said he can no longer set aside foreclosures as atypical. Incoming Pinellas County Property Appraiser Pam Dubov agrees that foreclosure sales need to be considered when setting home values in a given neighborhood.
"Foreclosures are going to be so significant in number that they are going to need to be considered as part of the market," Dubov said.
Areas with a large number of foreclosure sales are likely to see lower property values next year, Dubov said, but because local governments can set tax rates to offset any loss of value, tax bills won't necessarily drop.
"We'll start to break them down area by area, neighborhood by neighborhood, and see where they have an impact and where they don't have an impact," Dubov said.
The state Department of Revenue is holding a weeklong seminar for Florida property appraisers this week in Orlando. Turner said the state is expected to reveal new guidelines for property appraisers that factor in foreclosures.
One in every 157 Florida homeowners received a foreclosure filing in October, the third-highest state foreclosure rate, according to California-based RealtyTrac.
That's 54,324 Florida properties that received a foreclosure filing during the month. That's an increase of 13 percent from September.
By KRISTA KLAUS
Published: December 10, 2008
The rapid rate of foreclosures in Florida is starting to change the way county property appraisers do business, and the result could mean a change in home values and property tax bills next year.
The long-held wisdom of county appraisers was to ignore foreclosures when setting property values, but that's about to change, said Rob Turner, Hillsborough County property appraiser.
"This is a market that most everyone hasn't ever seen who's in this business," Turner said. "It screams for a new focus and guidance on how we're going to manage this."
Turner said he can no longer set aside foreclosures as atypical. Incoming Pinellas County Property Appraiser Pam Dubov agrees that foreclosure sales need to be considered when setting home values in a given neighborhood.
"Foreclosures are going to be so significant in number that they are going to need to be considered as part of the market," Dubov said.
Areas with a large number of foreclosure sales are likely to see lower property values next year, Dubov said, but because local governments can set tax rates to offset any loss of value, tax bills won't necessarily drop.
"We'll start to break them down area by area, neighborhood by neighborhood, and see where they have an impact and where they don't have an impact," Dubov said.
The state Department of Revenue is holding a weeklong seminar for Florida property appraisers this week in Orlando. Turner said the state is expected to reveal new guidelines for property appraisers that factor in foreclosures.
One in every 157 Florida homeowners received a foreclosure filing in October, the third-highest state foreclosure rate, according to California-based RealtyTrac.
That's 54,324 Florida properties that received a foreclosure filing during the month. That's an increase of 13 percent from September.
I get a lot of people asking me about the Foreclosures, if they're going to be "stopping" or "pausing" them, if the Foreclosure rates have gone up or down, if the Tax Values are going to be changing..... Etc - so here's a little glimpse at some of that information all wrapped into one article
banana republic
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Bondsman
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Dont really understand why if my nieghbor doesnt pay his mortgage and gets forclosed on, that would lower the value of my home. AND not only does it lower the value but I wont see it on my tax bill? WTF
has his prioritys ef'd up
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I heard about another mass wase of ARM resets that should be coming around real soon, it is where the adjustable rate mortgages mature, and a lot of the people that had 5 year arms will be faced with a massive hike in mortgage costs. I guess industry experts say that a hug wave of people will be facing foreclosures once again. Well at least those that didnt get on the refi kick to get out of those ARM's. Kinda makes you think that maybe property values will go way down after that according to the property appraiser. Good read, Josh.
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Ryan
1990 Mustang GT (In Process)
1993 LX Coupe (Daily Driver, but just choose not to)
2005 Excursion (Big Pig)
Ryan
1990 Mustang GT (In Process)
1993 LX Coupe (Daily Driver, but just choose not to)
2005 Excursion (Big Pig)
banana republic
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Well, I got my eye on a 5 acre plot....I'm hoping that it'll drop to around $10,000 before too loong....It has a nice little house and everything on it...
Naaaa.....I'm just kidding...it's actually 10 acres MOL.
J/K
Naaaa.....I'm just kidding...it's actually 10 acres MOL.
J/K
Team Geritol Racing
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What? You expect the govamint to lose money just because the citizens are having some minor difficulties? No way.
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YO! Barry! You LOST!
YO! Barry! You LOST!
banana republic
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I think the reasoning behind it is that the house will be vacant and no-one will be taking care of it. It is one of the quickest ways to ruin a house; don't live in it or take care of it in any way. When the houses are foreclosed upon, they become vacant and then the area becomes run down. This seriously affects the surrounding area since no-one wants to live in a run down part of town.
