Archive for August, 2009

Property Tax Reduction Program

Top Questions & Answers

1. How do you reduce your property taxes?

You file an appeal with the Valuation Adjustment Board (VAB) of Miami-DadeCounty to re-evaluate your 2009 assessed values. The county then schedules a hearing date in front of a special magistrate to present evidence, and give testimony regarding your properties assessed value.

1. What sort of evidence is presented to the VAB?

You would have to complete an evaluation of your property. You thoroughly inspect your property and neighborhood, and note any possible items which might negatively affect the assessed value of your home, including geographical items which specifically affect your home Then complete a full report along with varied governmental and reputable private studies to show market trend in your area. 

1. How long does it take for me to see a reduction?

Your appeal must be filed with the county by mid September. The county then,   schedules hearings throughout the year based on location. Once all evidence and testimony is presented to the special magistrate you will typically receive a response with 30 days.

1. Do I pay my taxes, even though I am appealing?

Yes, you are responsible for your property tax payments regardless of the status of the appeal. Once you receive a reduction the county will send you a refund for any overages you may have.

1. Can I appeal my taxes even if it is a rental property or I have a homestead exemption or I just bought it?

Yes, your appeal is completely based on the property and the assessed value the county as assigned to your home.

1. How does reducing my taxes also reduce my mortgage payment?

If you have an escrow account with your lender, you pay 1/12^th of your tax bill ever month. Once your taxes are reduced, you must contact your lender to review your escrow account and reduce your payments based on the new tax bill.

1. Are you guaranteed a reduction of my property taxes?

However the ultimate decision is made by the special magistrate once the VAB accepts the review process. So, No but worth a try.

1. What kind of documentation will I need to begin my appeal?

You will need to provide any documentation which shows the actual square footage and boundaries of your home (i.e., recent appraisal or survey). Any and all documentation which you feel affects the value of your home. Including but not limited to contractor estimate for repairs, code violations, recent repairs completed, etc. If you recently purchased your home we will also need evidence of ownership, such as a recorded deed or HUD statement.

1. How much does it cost to submit an appeal?

Application Fee: $15.00 This is the application fee charged by Miami-DadeCounty for each appeal. 

If you use a company or attorney office-Contingency Fee: This fee is based on the actual amount of the reduction of your 2009 tax bill.  Some companies charge a flat fee or a percentage like 25%-Ex. If your 2009 taxes are $3,000 before the appeal and $2,000 after the appeal, you will by charged 25% of $1,000.

Check out this article that just came out-is the Miami market stabilizing and making a turn for the better?  It is so hard to say since most of the statistics in articles, on the news and in publications are looking at Florida or all of Miami as a whole and you certainly cannot compare Miami to Destin or compare Coconut Grove and Coral Gables’s property sales to Hialeah. I know sales across the board in the condo and single family home market have increased in Miami but I still feel we have a good year if not more in front of us to weed out all the short sales, foreclosures and mortgage fraud that happened in the last few years.  What do you think?

Real Estate Outlook: Case-Shiller Reports Reversing
by Kenneth R. Harney
When the Case-Shiller index reports that home prices have reversed course and are finally rising again, and you know that Case-Shiller has been the gloomiest, scariest-headline-producing monitor of the real estate market for the past three years — some say: We have truly turned the corner here.

Not only are home sales up, new housing starts up, new permits up, but now the last of the doomsayers say that home prices are moving up.
For the month of June, in fact, the Standard&Poor’s Case-Shiller index found prices up in 14 of the 20 major markets it covers — and up nationally by one half of one percent.
That’s the first monthly gain in the heavily publicized Case-Shiller index in three years!
Other indexes that get less attention on the evening news began trending more positive a few months earlier, such as the federal government’s “FHFA” index.
But the Case-Shiller news, late though it was, should send a loud message to consumers: We’re past the low point of the cycle on prices: If you were waiting to buy at the bottom, well – we’ve passed that point.
So don’t sit on the sidelines if you’re serious about buying a house this year.
Case-Shiller found prices in Cleveland up 4 percent for the month, Dallas up by close to 2 percent, San Francisco, Washington DC and Chicago up by a percent or more.
But the bottoming out on prices is hardly the only sign of the housing recovery underway:
• New home building is beginning again even in the hardest-hit markets. In California, June bullding permits soared by 17 percent over May. In the high-cost San Francisco area they were up by 20 percent.
• In Florida, sales of existing homes jumped by 28 percent, according to the Florida Association of Realtors. Condo sales were up by an average 37 percent for the month. And despite the foreclosures still weighing down Florida transactions, average prices in June managed to rise by two and a half percent!!
• The share of distressed homes as a percentage of total sales is also on the decline — thirty one percent of sales in June versus 45 to 50 percent earlier this year, according to the National Association of Realtors.
• Meanwhile, the mortgage market continues to help sellers and buyers on the affordability front: According to the Mortgage Bankers Association, new applications for loans to buy homes remained steady last week. Thirty year fixed interest rates averaged 5.4 percent, while fifteen year loans went for an average 4.8 percent.
Published: August 4, 2009