[Chat] Ad that came in the mail from "Value Appeal"

[Stephen J Gewirtz]

I received an ad in the mail today from an outfit called "Value 
Appeal."  It shows that my current assessment is $178,600 (the correct 
figure) and that if I pay them $99, I should be able to reduce my 
assessment to $124,285 based on information they will supply concerning 
comparable sales.  Since a house two doors from mine just sold for 
$200,000 in September, I find it hard to believe the claim.  The ad also 
claims that I can reduce my real estate taxes by a total of $3690 until 
the next reassessment (in January, 2014).  Because of the homestead tax 
credit, I know that that is totally false.  And I have no idea whether 
the advertiser is or is not legitimate.

If you have owned your house for a number of years, you probably had 
your assessment go way up in January, 2008 and then go down last 
January.  But thanks to the homestead tax credit, you probably are being 
taxed on nothing close to your assessment.  Five years ago, my 
assessment was a little more that $83,000, and thanks to the homestead 
tax credit, my effective assessment has gone up by only 4% per year 
compounded for City and CVCBD tax purposes and 10% per year compounded 
for State tax purposes.  Therefore, I really gain nothing by lowering my 
assessment to $124,285 even if the claim that I can do so is true.

On the other hand, if you bought your house just a few years ago and 
were reassessed almost immediately based on having paid a high price 
during the real estate bubble, you might gain by appealing your 
assessment since you are getting little or no benefit from the homestead 
tax credit.  At the same time, it is not hard to get information about 
comparable sales without paying $99.  According to the ad, an appeal has 
to be filed by December 31 (I just looked online, and the deadline is 
the first business day after January 1).  You have the right once a year 
to appeal/protest your assessment.

Let me add that CVCBD was told  by the City to expect a further 
reduction in assessments when we are reassessed again in January, 2014.  
Nationally, because of the number of foreclosed houses that have yet to 
go on the market, prices are still dropping and are expected to continue 
to drop.  I have no idea what is happening with home prices in Charles 
Village.


Steve