Real Estate Tax Value Challenge
In Ohio, every 3 years all 88 counties are required to update real estate values and consequently adjust tax amounts. Homeowners dread these because the taxes always seem to go up. However, they can actually adjust down as they did after the Great Recession. The county is looking at recent sales in your area and an exterior view of your home so there is room for error. Particularly, if you have deferred maintenance or damage on the interior which they cannot see. If you feel your taxes have gone up by an unjust amount you do have several options to challenge your new tax value. In Montgomery County, Ohio you can schedule an informal review. You’ll discuss your property value via Zoom or telephone call with one of their county appraisers. If you don’t like the outcome of that conversation you have the option to file a formal appeal with the county’s Board of Revisions (BOR). They will schedule a hearing with their 3 member Board. You’ll have 10 to 20 minutes to present your case. You’ll want convincing evidence like: A record of a recent sale of the home within the last 2 years A recently completed independent appraisal A list of recently sold similar properties in the area A Realtor’s market analysis If you don’t like the outcome of this, you can appeal to the Ohio Board of Tax Appeals or the Montgomery County Court of Common Pleas. There are timelines.Filing with the BOR is required between Jan 1 and March 31. Being an active Realtor in the Dayton, Ohio area for years, I’ve helped a number of clients challenge their tax values. If you need advice or assistance, just reach out.
Real Estate Home Warranties Explained
You can think of a home warranty as an insurance policy for the mechanical systems in your house like HVAC, plumbing, electrical, appliances, etc. Not to be confused with homeowner’s insurance which covers your home against perils like fire, wind, falling trees, water etc. A home warranty lasts for 1 year with the option to renew. Most have a deductible for each system which usually runs from $50.00 to $100.00. It’s for EACH system so if you have a plumbing problem and electrical problem at the same time you’ll pay a deductible for each. There are usually several levels of coverage offered from just the main home systems with the basic coverage, to the top level handling coverage right down to door bells and garage door openers. There are add-ons too for pools, wells, septic. Coverage can be had for single family homes, condos, multifamily and mobile homes. We tend to think of warranties only on the ‘buy’ side but home sellers can benefit too. Many people are not aware that as a seller you can activate a warranty on your home while you have it listed! This can be a nice incentive for your buyer. Then transfer coverage to the buyer at closing. The best part is you are covered during the listing period and it may even help you with inspection issues. Over the years as a Realtor in the Dayton Ohio area I’ve seen home warranties save a lot of trouble. They are particularly important with aging higher cost systems like, furnace, A/C, water heater, plumbing. Most warranties run between $500 and $850 per year. A basic water heater replacement can easily run $1500 these days.
Appraisal Under Value, Now What?
When a real estate appraisal comes in under the agreed upon sale price we call it, a short appraisal. As in, ‘short’ of the value it needs to be. It can be a showstopper because the bank will only loan to that amount and the deal is in jeopardy. What now? There are 5 options with a short appraisal. The seller comes down to meet the appraised value The buyer brings extra money to closing to make up for the shortfall Buyer and Seller split the difference between the short appraisal Terminate the deal due based upon the financing contingency not being met Challenge the short appraisal and try to get it amended to meet the sale price None of these options are without pain. The seller never wants to come down, the buyer never wants to come up, no one wants to let the deal die and positive results from challenging a short appraisal are more scarce than hen’s teeth. In the end it often comes down to how badly each side wants to get to closing. I often see the parties split the appraisal gap. In my 30 year career selling real estate in Dayton, Ohio I’ve been through a lot of these and I know how to get you through these tough parts. Reach out if you need some assistance.
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