Saturday, March 21, 2009

It just gets curiouser and curiouser!

MORENO JULIAN W JR 501 VICTORIAS CIR SAINT MARYS, GA 31558 135T 029A H/L 29 VICTORIA LANDING PH 1 S0 R3 0.21 Acres: $50,000. Improvement Value $125,131 Total Value $175,131. So, there's the official data for my house - finally. To find yours, go to the T&G website. It's very simple: it's in alphabetical order by owner. Now, here's why I say it gets curiouser and curiouser. I just closed on this brand new house on December 1, 2008. I paid $186,500 for it. I spent another $2,400 on a cypress fence and $2,050 on a lawn sprinkler system. I listed both of those improvements on my property tax return. I would have bet money that my total value, this close to the original sale, would have come out to be the purchase price plus improvements, or close to it. I feared it might even be inexplicably higher. Instead, it turns out to be $15,719 less. Did I pay too much or (as I suspect is the case) have some of the original owners in the subdivision sold at a loss? Quien sabe? Whoa, Nellie. Hang on: it just dawned on me that if my .21 acres (I picked the smallest lot in the S/D for ease of lawn maintenance by my housekeeper) is ostensibly worth $50,000, then land in this S/D is worth damned nearly $250,000 an acre!? The hell you say! Oh, yeah and another curious thing: When I bought homeowner's insurance, I was told that the replacement cost (i.e., with no profit for the developer) was $154,000, yet the tax assessor says the market value of the house itself (minus the land) is only $125,131!? So let me get this straight: it is now worth less than the cost to rebuild it? If that is true, perhaps we do need to hire more firefighters.

16 comments:

Anonymous said...

Something is strange about this. Hopefully its because certain people filed appeals.

Out of curiosity I took a look at certain people on different boards around here. Gary Willis lives on the marsh in a two story house in St. Marys. His house is valued at 194,832 the value decreased 6,858.00. Jim Wells lives in St. Marys 323,456 the value decreased 10,863. Steve Berry lives in Mush Bluff 433,504 the value decrease 48,473.

Jay Moreno said...

Thanks. That's damend interesting. By the way, while folks are checking out that list, they may want to take a look at the combined holdings of the extended Lockhart family. I can't help but wonder if they hold more of downtown under other names. Then back up about five letters and check out he holdings of the local, self-styled populist millionaire who touts himslf as the champion of the little guy. By the way, one large piece of "pink" commercial property he has recently acquired has not yet had time to appear ont he tax rolls.

Pollyanna said...

Jay:

It is my understanding that insured replacement cost, real estate sales price and property tax values are three different figures and are usually three different figures.

Is it possible to watch the County Commissioner meetings on the web or only on the cable channel? Do they have a set schedule for the cable channel? I keep looking for it on the cable channel and can't ever catch it on.

Jay Moreno said...

Not to be snarky, but you're talking to the guy who at one time in the 1970's was the leading personal line property and casualty insurance (i.e., auto and homeowners) for Metropolitan for the entire state of Georgia.

Moreover, I still have my old Century 21 gold jacket hanging in the closet.

When I had cable, my recollection is that they broadcast it the weekend following the meetings. It was either at 8:00 or 9:00 PM on Friday, Saturday, and Sunday.

Pollyanna said...

Small world Mr. Snarky...

Your talking to the lady who has been a property and casualty agent for the last twenty one years. It has been my experience, that the three figures: insurance replacement cost, real estate market value and property tax assessement...hardly ever match up.

Jay Moreno said...

Then you will surely know that my point in respsone to yours what that I of course know tat. In my original post, I was commenting on the very upside down situation where the replacement cost of the dwelling is more than the assesors full market value of the improvement (the house for non-insurance people). The comment about hiring more firemen went to the inherent "moral risk" in that scenario with the increased probability of arson fraud.

Jay Moreno said...

Corrected version:
Then you will surely know that my point in response to yours was that I of course know that. In my original post, I was commenting on the very upside down situation where the replacement cost of the dwelling is more than the assesors full market value of the improvement (the house for non-insurance people). The comment about hiring more firemen went to the inherent "moral risk" in that scenario with the increased probability of arson fraud.

Pollyanna said...

As a property and casualty agent, I have the opportunity to examine paperwork that shows all three valuations. Almost always, the insurance replacement cost is the highest of the three values...then the real estate market value is next with the property tax value being the lowest of the three. With all your experience, I am sure you already know that...the tax assessor has no idea what kind of customized and upgraded items are in your home such as high end flooring and wall coverings, custom kitchen cabinets, custom and high end bath fixtures, custom sound and alarm systems etc. All of these items add to the replacement cost and market values. The market value of a home is determined by the amount you can actually sell the home for. The assessed value for tax purposes appears to be more generic in nature.

Jay Moreno said...

I understand that. The rest of you pardon us while we talk a litle shop. Standard construction. No scheduled items. Standard contents coverage at 50% of dwelling coverage. HO6.

I say again: I have been both a multi-lines agent and Realtor. I get it.

Pollyanna said...

Jay:

I sure hope you don't have an HO-6 because that is for condo owners. You should have an HO-3 for your home and the preferred policies cover 70% on contents :)

I gotta luv ya Jay...you remind me of my son...he knows it all too...have a good week!

Jay Moreno said...

Give me a break: I'm working from memory from nearly 20 years ago. HO3 is correct. Who in the hell has $140,000 worth of furnishings in a $200,000 home? If you can sell it, good for you.

The difference of course is that I actually do!

Pollyanna said...

Don't feel bad Jay...my first day in the business, my then "boss" and now "best friend" told me "you will never know it all"...that statement has proven true. After 21 years in the insurance business, I still learn something new everyday :)

Having been involved in a few claims over the years, you would be surprised how much all your personal items can add up. 70% is not out of line. I advise my clients to go through their home and take photos or video of each room and open every closet and photograph the contents...then keep the documentation in their safe deposit box. When a loss occurs, people remember all the main items they have but have trouble recalling all the items such as linens and other items stored in closets.

O.K. That is enough about insurance...now let me ask you this...What is the "formula" for figuring the value for property tax purposes?

Jay Moreno said...

First, they (the assessors) search the records of sales in the neighborhood - preferrably sales within the last six months. They go back further if there are not enough in that time frame. From those figures, they arrive at a cost per square foot and land values for similiar properties. From there they assign a fair market value (FMV) to each parcel. Next, from that value, they subtract the dollar value of whatever homestead exemption you have (depending upon your age). I believe that thje current exemptions are $4,000 under 62 and $25,000 for 62 and over. They then take forty percent of the remaining value to arrive at your assessed value. That is the value to which they apply the millage rate. One mill is $1.00 per $1,000 of net assessed value. If you are 65 or older, they apply the total millage rate minus the the school tax portion.

Anonymous said...

This is GREAT!!!!!

Everyone learned alot during the process. This is a teachable moment for everyone to understand the ENTIRE process.

Pollyanna said...

Jay:

Thanks for providing the formula they use to arrive at our property tax values. Looking at that formula...now I see, why the property tax value is the lowest of the three valuations (insurance replacement cost value - market value - property tax value)

I appreciate the effort you put forth to get that information to us.

Jay Moreno said...

You're welcome, but it was no effort. I looked up that info ages ago. Just another example of why I will not need OJT if elected to the county commission.