One.
That’s how many of 34 Milwaukee home sales listed in Sunday’s Journal Sentinel was for more than the assessed value of the property. It’s listed in blue in the picture below.
Twenty.
That’s of how many home sales involved foreclosed properties.
On average, the 34 properties sold for 43%, or $45,571, under assessment.
Ouch. The implications for the city budget and the distribution of the property tax burden are huge. Maybe warm weather sales won’t be so skewed, but these numbers are not good.
A few caveats — the paper actually lists 36 sales, but the assessment for one property, 9727 W. Lolita, was for $50,000. The home there is new and the assessment is for the lot only, so that property was excluded from the analysis. Another property, 6709 W. Monona Pl., is not in the assessor’s data base, so that one also was rejected as well.
Another assumption is that if a previous owner is listed as a financial institution, the property was foreclosed upon.
Click on the picture for a larger image.
Sales and Sale prices may or may not be better come next Summer, but it really doesn’t matter, the damage is done. Everyone that wants a lower Assesment should appeal, values are set “As of January 1st”, which means comparable sales in November and December are the best you can do. Sales next Summer don’t count, and last Summer are out of date. Some may not want a lower value if they’re thinking of selling in the next few years, but the (every) City is in a very difficult position of arguing that values haven’t gone down a great deal. I would say, if you don’t have to sell, Appeal. John
Lets look on the bright side. Average sale price for a house in Detroit during the past year, 19K. I say Milwaukee is doing nicely all considered.
Let’s think this thing through. Let’s assume that the average home value in the City of Milwaukee goes down 40% (the number on your chart) and that the assessor re-assesses at that amount. The amount of tax to be spread around all of the properties in the City remains constant (or increases), so the same amount of revenue is derived from the same properties in the same relative proportion. You pay the same real estate tax, only the rate has gone up! If anyone is looking for a property tax savings windfall from the decreased value of his or her house, keep dreaming!
Rational Observer –
Not quite. The values are dropping much faster in some areas of the city, meaning the property tax burden will shift from those areas to those where values are steady, increasing or dropping-not-so-fast. The folds those various value changes together, but the differences exist.
I know for a fact that the City fully intends to leave as many Assements as possible unchanged, hoping that few will protest for a lower amount. Those that do protest will in fact probably end up paying a lower portion of the Levy. Also of note, if you looked at your assement last Year, it may have appeared unchanged, in fact, they lowered the Improved value (House) and raised the Land value a equal amount. Liars Figure and Figures Lie. The City will do everything it can to get the number it needs, the Citizens should certainly feel entititled to do everything possible to get a fair Assesment.
Any suggestions on effective ways to appeal an assessment? Do I need to write a letter and present comparable sales in the area I live?
When your new valuation comes in April it will tell you how to appeal (in the fine print). You can get comparables on Zillow.com, or the City of Milwaukee web site (by Aldermanic Ditrict). Someone from the City will want to walk through your House. You can attend appeals that are scheduled before yours to see how they work, meetings are open to the Public. Be nice, use facts, and don’t say “Becaue my taxes are to high”. Good luck!