This month, the much anticipated tax revaluation is occurring in both Dare & Currituck counties. North Carolina state law requires that all property be assessed every 8 years or sooner, to re-establish equity among all properties and to equalize the tax burden among all classes of property. The last time both Dare and Currituck counties assessed property was in 2005 which reflected values near the “peak” of our current market. Since 2005, the annual number of sales transactions through the Outer Banks Multiple Listing Service has declined to about half of that boom period of 2005-2007. As a result of fewer properties selling and the market adjusting to less demand, our property values have seen a 10-30% decline in value since 2005. What does this mean to you as a property owner here in Dare County? Joe Lamb Realty is here to shed some light on this hot topic.
Q: Will my assessment go down?
A: The short answer is, yes. The assessment is a snapshot in time and is typically used as a benchmark for real estate professionals. Since we’ve seen a 10-30% decline in the market since 2005, you will most likely see that same decline reflected in your new assessed value. However, keep in mind as the market recovers, prices could sell above or below that assessed value in the coming months. All this depends on supply and demand, ease of obtaining funds to purchase property and natural market conditions that are unpredictable. The new value assigned to your home will, however, give us a basis point of what your home is currently worth as of January 2013. Of course, there are other factors to consider in narrowing down an accurate list price range such as recently sold properties, what’s currently on the market competing with your property and the general condition of your home (i.e. if you have made recent upgrades to the the kitchen or baths, added a pool, etc.). All of these factores combined determine what a property will actually sell for.
Q: Will my taxes go down since the assessment is going down?
A: Most likely, no. Dare County will still need an equal amount of revenue to provide current services and the same is true for the individual townships. To maintain the budget, tax rates will increase to a new amount in order to compensate for the lower assessed values. Dare County currently calculates the tax rate at $.28 per $100. Your out of pocket expense will most likely remain the same but could go up slightly. To look up your property and see the current assessed value and tax bill, visit the Dare County website, where you can search by Owner Name, Address, or Parcel number to find your property. Should you have any questions or need assistance in understanding the new revaluation, feel free to contact us here at Joe Lamb Realty. We are available to answer any questions about real estate whether you are in the market now or in the future to sell or buy property on the Outer Banks.