Last month, homeowners throughout Arizona received their property tax notices, and I have had many readers call to ask me how it is possible their property values declined, but their property taxes increased so much in just one year.
I feel your pain. The property valuation on my home in Las Sendas decreased, and my tax amount increased, as well. First of all, don’t panic. There is no correlation between the assessed value of your home and your property’s true market value.
Recently, I had a great listing in Red Mountain Ranch, which was fairly priced at $335,000. Another REALTOR® represented an out-of-state buyer, who offered $221,000. Of course, we rejected the offer because it was absurd, even in this market. The buyer walked away without raising his offer because he said he would only pay at what the property was valued by the Maricopa County treasurer. The house sold and closed a few weeks later for $330,000. I am sure the out-of-state buyer still is looking for somewhere to live.
So, why did your taxes go up? According to the Maricopa County treasurer’s Web site, tax increases are a result of higher budget demands. Former Maricopa County Treasurer Charles Hoskins was quoted last year as saying, “We often hear from citizens wanting to know why their tax bills have gone up, even though the assessed value of their property has gone down. And the answer is increased government spending.” OK, we understand the municipalities have been strapped, but so have we.
On the plus side, Arizona has among the lowest property taxes in the nation, with an average of $986 per home. By contrast, in New Jersey, the average is $6,348 per home.
If you want to know what the current market value of your home is, please don’t hesitate to give me a call. I would be happy to provide you with a complimentary market analysis.
Wishing you and your family a very Happy Thanksgiving.
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails And Paths Premier Properties. He is an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com.