Real Estate Information Archive

Obviously, all property owners in Beaufort County have received their new assessed value statements from the assessor's office, I know I was a little shocked to see the valuations for both my personal home and investment properties...the following is from Marsh Rabun, a certified Appraiser in Hilton Head. It may help answer a few more questions for you, or she may be able to help in any challenges you would like to make with the Assessors Office.

Beaufort County Reassessment 2009

 The SC state legislature has mandated a reassessment every 5 years. The last assessment was dated December 31, 2002 so the current assessment date is December 31, 2007. This is necessary to compare all properties in the County at a single point in time.

For a home that has not transferred title, the assessed value of each property in Beaufort County is capped to a 15% increase by a state law passed in 2006. It is capped at the 15% increase, if does not transfer title, for the next 5 years, if no physical changes are made to the property.  For instance, if your assessed value in the last assessment was $300,000, the current capped value could not be higher than $300,000 + 15% of $300,000($45,000) or $345,000.

Also due to the state law passed in 2006, if your home HAS transferred title by sale, to/from a trust, or by will since January 1, 2007, there is a Point of Sale reassessment(AKA Assessable Transfer of Interest) which MAY be greater that the 15% capped assessment on the property had it not transferred. If it transferred in 2008, its value  will be “trended back” to the December 31, 2007 date based on comparable properties-like properties in a similar location selling at that time. 2009 sales have not been considered at this time.               

As a homeowner, you may not be satisfied with your assessed value and may think it needs to be appealed.  There are few important points to remember and consider.

1.       The date of the taxable value placed on your property is December 31, 2007 and that date cannot be changed, although the market value has declined, in some cases significantly declined since that time.  Sales from 2007 and as late as very early 2008 may be considered as comparables, not sales later in 2008 and 2009. Think about what your property was worth in December 2007, not today. Unfortunately, today’s values don‘t count.  

2.       If you feel your property is assessed incorrectly due to significant discrepancies in physical data, -factual errors-in overstating living area  and features, this may be grounds for an appeal. However, if these errors that have been made are in your favor, an appeal may bring them to light and you may end up with a higher but at least more correct assessment. If you have questions about the physical characteristics of your property, you may go to www.bcgov.net, and under Departments, go to Assessor’s and go to Property Max and enter your last name or tax account number to find living area and other features considered.     

3.       The hard working employees of the Beaufort County Assessor’s office have a difficult job in assessing 126,000 parcels equitably and in compliance with state law. They are responsible for providing a market value as of December 31, 2007. However, it is the “Taxable Value” that is important since that is the value that partially determines your taxes. Assessor’s office personnel are available for questions at 843-470-2522(Beaufort, 843-757-1500X 226(Bluffton), 843-341-8411(Hilton Head Island).

4.       If you would like to appeal your taxable value, you have 90 days from the date of the notice from the Assessor’s office to file the appeal.  You can file the appeal yourself, or have an “Authorized” person file an appeal for you. Only certain people may be “Authorized”. Attorneys, CPA’s, Corporate Officers and Full Time Employees, Partners and Fiduciaries, IRS Agents, and SC Licensed and Certified Appraisers may be “authorized” representatives. There are several good appraisers in the area who could act as your authorized representative since they would also be able to do an appraisal of your property as of December 31, 2007 which would be helpful in proving your case. Real estate agents and brokers cannot be authorized to act on your behalf unless they also fall into one of the other categories. Proof of eligibility and written consent from the owner/taxpayer must be provided to the Assessor.

I hope this information has been informative. Please let me know if I or any of my colleagues may assist you in appealing your new taxable value.

Cordially,

Marsha W. Rabun

SC Certified Residential Appraiser #2691

Rabun Associates LLC

P.O Box 23674

Hilton Head Island, SC 29925

Office Phone-(843)686-3344

Cell Phone – (843)384-3214

Email - marsha911@hargray.com

The word “correction” is a misnomer applied all too frequently in a misleading way. What homeowners and homebuyers are monitoring is principally where home prices have been and where they are headed. Nationally, the median home price rose 1 percent last year – that on top of the 53 percent rise during the five-year boom from 2000 to 2005. This year, the national median price is expected to fall 1 percent. By any standards, it is an extreme stretch to call it a correction when a particular asset price rises better than 50 percent and then retreats one percent. Even a relatively large price decline of 12 percent in Sarasota cannot reasonably be considered as a correction when its local market had a 150 percent price increase during the boom. Let’s see, that is 150 steps forward and 12 steps backwards.

Each Market is Unique
Yet, consumers are exposed to constant pounding of correction, implosion, recession, and other negative words when discussions of the housing market arise. Against all that doomsaying, naturally consumers would pause and step away from buying a home. Even in places like Columbus, Ohio – a market where prices have only modestly risen and what no sane economists would characterize as being in a bubble -- buyers have pulled back due to constant negative messaging from the media. Many REALTORS^® have relayed stories of a buyer prospect who decided to not purchase because of a headline of a housing market collapse in a national newspaper. This is irrational -- there is no bubble in Columbus Ohio! Or in Kansas City or in Houston. The latest median local prices in these markets were around $150,000. Anyone with a good credit history and a middle class job should have the means to purchase a home (though perhaps not the dream home).

Think also of the buyers who got priced out when mortgage rates were rising, yet refused to re-enter the market when mortgage rates were falling. Consider, mortgage rates averaged 5.8 percent at the very peak of sales activity in August 2005. Sales subsequently declined as rates moved up to 6.8 percent one year later. This is understandable. Higher rates mean fewer buyers can qualify. However, mortgage rates since that time have fallen - to 6.2 percent in the first quarter of 2007. But the falling rates have not attracted buyers back into the market. All the while, over the past year-and-a-half the economy added 3.5 million net new workers with wages having risen by 6 percent. So we have plentiful more jobs at a higher pay and similarly favorable mortgage rates, yet home sales are down by 15 percent from the peak. Buyer confidence has simply disappeared!

Sales Volume -- NOT Prices
The correction is occurring not in home prices but in sales volume and new home construction. Yes, home sales are down -- perhaps worthy of the word correction or recession. Yes, new single-family home construction fell more than 35 percent from peak to trough. And yes, construction jobs have been slashed and REALTOR income has fallen. And yes, profits are falling for homebuilders and mortgage lenders. So from an economic impact and income generation, there is clearly a housing market adjustment. Workers and companies in the industry are being impacted.

Stock market transaction volumes are not that critical to stock market investors. Falling sales volume in New York Stock Exchange does not imply a stock market correction. Investors, rather, focus intently on the stock price. Housing wealth accumulation prospects should and would be the focus for homebuyers, too. Unfortunately though, today’s homebuyers are instead bombarded with the negative sound bites of RECESSION, CORRECTION, and IMPLOSION when the matter of housing shows up on the media without the distinction whether one is talking of home price (which has been either positive or minimally negative depending upon local markets) or of sales volume change or homebuilder’s profits (which has been falling but not of importance from consumer’s point of view).

For the Record
There is indeed a recession in terms of construction activity, construction jobs, and falling sales. But there is really no HOME PRICE recession/correction/implosion. REALTORS should set that record straight. REALTORS^® should also discuss the one consistent proven way to accumulate wealth over a long-period -- the one through homeownership. The net worth for a typical homeowner is $184,000. The net worth for a typical renter is about $4,000. That is a something that all REALTORS^® should be discussing with their buyer prospects.

Courtesy of:

Eleanor Lightsey O'Key, EVP