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Seminole County tax hearing

I had my property tax hearing on Tuesday morning for my rental property in Longwood. It wasn't quite what I expected. I got to sit in a conference room along with a staff member from the Seminole County property appraiser's office and a special magistrate (a retired appraiser). I got to explain my justifications why I thought my property was worth less than what they were assessing it for. The property appraiser got to counter my arguments.

My argument is that this rental property of mine had some deferred maintenance including needing a paint job in & out, a new roof, a new water heater, and updating the kitchens and baths. I provided repair receipts for the work I had done during the Spring (assessment was for 1/1/2007) as well as estimates to redo the roof and the kitchen / baths. I also showed proof that several of the similar comps in the neighborhood had MLS printouts showing that they were offering 3% in closing costs and that they were beautiful and completely remodeled.

The property appraiser did not want to hear any of that. She flat out told me that they cannot take property condition into account because there is no way for them to know what the condition of individual properties were like at the time of sale. I explained to her that yes there is a way for you to know the condition - just look at these MLS printouts and these receipts and estimates I am providing to you. That is the proof that you need and I am giving it to you.

I told her that when I contested a property in Orange County last month that the property appraiser asked me specific questions about the interior condition, the upgrades, etc. of my rental property. According to her "that isn't how we do it in Seminole County."

She also had the nerve to tell me that prices were still increasing on 1/1/2007 even though things are tougher now. I really had to hold my tongue. Prices still going up in January 2007? In Central Florida? Really? I guess in the ivory tower of a government appraisal office maybe they are.

She didn't want to hear any of it. But fortunately she does not get to make the decision. The special magistrate does. I won't find out for about 3 weeks what the result is.

You have to love these government employees.

Rob Arnold, ABR, CPL, GRI, Full service and investor friendly Realtor, Managing real estate broker, Licensed mortgage broker, Notary Public

407-389-7318 www.SDRhouses.com/ http://www.webuyhousesflorida.com/

Posted by Rob Arnold, Florida Realtor / Investor on 11/15/2007 08:45 PM

Comments (6)

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6 Comments on Seminole County tax hearing

Wow I am completely surprised by your blog. How much where you trying to adjust for? Unfortunately, I missed the deadline to contest the values of my properties. Funny thing is my house in Alafaya Woods actually went down in value(which I want them to explain?) and my Casselberry properties almost doubled? Wondering why we can't use the income approach to our rentals? I will be there next year you can bet on that. All in all I am out an extra 10-13000 a year where is this money going? This subject really fires me up.

11/16/2007 09:10 AM

by Jeremy

I am trying to get the value reduced from 160K to 140K. Comps for completely remodeled houses in the same subdivision sold for 200K and 205K while paying 3% in closing costs. The just value is supposed to be about 85% of sold price to discount for closing costs and commissions. My house is a somewhat fixer-upper. It certainly is not totally remodeled like the comps were.

I discussed the income approach regarding my rental property. I was told that an appraiser would not use the income approach for a single-family house, they would use the comparable sales approach.

I then said, well an appraiser would also take into account property condition when using the comparable sales approach. They would also subtract out for any concessions like the seller paying 3% of the buyer's closing costs. They didn't like me saying that. They want to use comparable sales but not make adjustments for positive or negative factors. I don't think so.

11/16/2007 03:33 PM

by Rob Arnold, Florida Realtor / Investor (Sand Dollar Realty Group, Inc.)

There probably will be more and more people contesting their assessments. When they get inundated with assessment contests, then they'll start being flexible.

But I think you have to play by their rules and go in with much lower comps if you can find them.

Good luck!

11/19/2007 03:41 PM

by Orlando Homes Armando Rodriguez Real Estate & Mortgage Broker-GRI (QUEST REALTY SERVICES)

Armando - I actually did provide a total of 8 comps from MLS. 2 were in the specific neighborhood and 6 others were similar properties within about 1/2 a mile. The property appraiser tried to dismiss the properties that were not in the specific neighborhood. I guess we will just see what happens. It was quite an interesting process.

11/19/2007 09:25 PM

by Rob Arnold, Florida Realtor / Investor (Sand Dollar Realty Group, Inc.)

Rob,

Did you get a chance to supply an independent appraisal to the hearing? I know an Orange County Magistrate who would allow an appraisal to be presented so help substantiate your position. If the appraisal is credible, I would think Seminole County would work the same (although I must admit that I do not know the magistrate personally).

11/26/2007 02:38 PM

by Robert Elfand, MRA, RAA (Double Tree Appraisals)

Robert - Definitely a good point. For more expensive properties, an appraisal is probably a wise thing to bring to the hearing. For most of my single-family rental properties, the tax savings per property that I am contesting is maybe $500 +/- per property. The cost of most appraisals I have gotten lately are $300-$400. So if I spend the money on the appraisal, then I only save a net of $100-$200 per property - IF they give me the full reduction that I am asking for.

11/26/2007 05:04 PM

by Rob Arnold, Florida Realtor / Investor (Sand Dollar Realty Group, Inc.)

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