Unless you've been living in a cave the last couple of years, this property assessment decline in Maryland real estate shouldn't come as a surprise. The State of Maryland reassesses 1/3 of the properties in the State every year. The ones coming out of the reassessment process now were last assessed in 2005-2006. In many communities, the height of the housing market. Late 2006 is when many Realtors saw the market begin to decline in value.
The question many home owners are asking is, "since my property has declined in value, will I see a reduction in taxes?" Unfortunately, the answer to that may very well be no in many cases. Maryland is a Homestead Credit State so we didn't see tremendous increases in property taxes when the market was increasing by double digits every year. Those increases in property taxes are capped in many counties. Anne Arundel County increases are capped at 2%, while Howard County is capped at 5%.
Because of these caps, many Maryland home owners aren't paying taxes on the full assessed value of their home. This is especially true for home owners who have been owned their property for a longer period. Even though a 20% reduction in assessed value is pretty large, it still doesn't require a reduction in taxes.
Keep in mind that there are several different "values" for a property. Assessed value, appraised value and market value. If you're interested in knowing the likely value that your house will sell for...contact your Realtor. If you don't already have an agent, I can help.
If you're SEARCHING for a home anywhere in Maryland, click here to view ALL ACTIVE LISTINGS.
Richard Iarossi, REALTOR®
Long and Foster® Real Estate, Inc.
Crofton, MD 21114
410-451-6255 Office
443-995-9595 Cell
Web: http://www.RichSellsHomes.com
eMail: Rich@RichSellsHomes.com
Annapolis MD Real Estate Specialist
Bowie MD Real Estate Specialist
Crofton MD Real Estate Specialist
©2009 - RichSellsHomes, All Rights Reserved
