This is the time of year when we talk about how hot it is and how great it is that summer is finally here! Ironically, summer isn't even here yet! The first official day of summer, astrologically for 2024, is Thursday, June 20, when the Northern Hemisphere has the longest day of the year, according to the Farmer's Almanac. But when we talk about meteorology, summer starts on June 1.
I know summer is here when the weather lady tells me the weekend temperature will be between 97 and 99 degrees (don't forget to hydrate and bring the pets in)! Many things about the summer real estate market are counterintuitive to your thoughts about the real estate cycle. Spring is over, and when summer begins, Atlanteans become distracted with travel, beach trips, and long weekends at the lake. The excitement and urgency of buying and selling homes slows to a casual summer pace. We have less stress, more opportunities, and easier schedules, making it easier for buyers to make good decisions.
Another thing that calls summer to us once we break through Memorial Day is the 4th of July, a day for all Americans. No matter where you or your ancestors came from, everyone takes the day (or week) off to enjoy all the best things about summer. It is also the best day to eat as many hot dogs as you want, guilt-free. Enjoy the summer. You could think about opportunities to buy and sell while there is less pressure than during a typical spring market. You could also spend this summer getting ready for the Fall market so that your home is photograph-ready with fresh paint and a bright landscape.
On the business side of things, July brings our Property Tax Assessments in the mail. If you are currently a homeowner, whether it's your primary home or investment property, every property will get an envelope from the county with the best guess of where your property tax bill will be when the amount is due in full in the fall. Here are some terms to be familiar with when looking at the tax assessment document you should receive by June 1.
- An Annual Assessment is an estimate of your property's value made by the local government. This assessment is crucial because it's used to calculate your property taxes. Local governments use property taxes to fund services like schools, police, fire departments, and public works.
- Property Value (as seen from the county perspective) is what your home would sell for at a specific time if it were on the market.
- How is the assessment done? Assessors who work for the local government evaluate your property by looking at the sale prices of similar homes in your area last year and this year and the size and condition of your home.
Assessors arrive at assessed values based on these factors. Unfortunately, assessors don't examine properties and current conditions closely. Instead, they rely heavily on data.
- How does this Assessment affect your property taxes? Your property tax is a percentage of your home's assessed value, known as the millage rate. For example, if your home is assessed at $300,000 and your mileage rate is .97%, your annual property tax would be $2,910. If your assessed value increases, your taxes could increase even if the millage rate stays the same.
- You can appeal your Assessment! Suppose the county's assessment of your home's value is not in line with the community values or has been overstated based on current sales in the area. In such a case, you can appeal to the county to reconsider the assessed value based on the data that you provide.
How to Appeal Your Assessment
- Review your Notice: Look for errors and compare your home's assessed value to recent sales of similar homes.
- Gather Evidence: Reach out to me to collect data on the comps in your area and their sale prices. I would be glad to help gather information for your appeal. Photos and documentation of any discrepancies in your property can also be helpful.
- Follow your county's process for appealing assessments. All assessments in the state should have been delivered by July 1, regardless of whether or not your assessed value went up. You have 45 days from receipt to file your appeal in person or online.
- You may be asked to present your case in front of a review board. It's ok, and it's your right, to show your data to a table of your county peers who have volunteered specifically for this job. These volunteers are on your side as county neighbors. No one wants to see over-assessments that cause errors and assumptions made about property value.
So, as we kick off the summer solstice season on June 20, tax assessment letters by July 1, and the All-American holiday of July 4, enjoy the sun and make the most of your vacation or downtime. Remember to call me anytime for help understanding property values and the annual assessment of your home. Knowing your home and community values enables you to stay informed about one of your most significant investments—your home! If you ever feel your assessment doesn't reflect your property's actual value, knowing how to address it can ensure you don't overpay property taxes.
Keep an eye on the notices you receive, don't hesitate to question them if something doesn't seem right, and don't be afraid to ask for help. Your wallet (and neighbors') will thank you.
