Most of the home buyers I work with in the Williamsburg Area will typically use the James City County, Williamsburg or York County Va assessed value as a basis when determining an offer price on a home. They erroneously believe that is what the property is worth.There may be some areas that are close in their tax assessment to the value of the property, but markets fluctuate and market value has nothing to do with the Tax Assessment. Home buyers and sellers should know that the fair market value of how much your home may sell for is generally based on comps of properties sold in the area, usually within the past 3 months or so.
Many consumers confuse assessments and appraisals. An assessment is the value placed on a property by the county or city’s assessor’s office for the purpose of determining the property tax due. The county or city assessor determines your assessed value and an appraiser determines your appraised value.
An appraisal is a report done by an appraiser to determine value. typically for a mortgage or refinancing. The appraiser will use recently sold prices ( going back a maximum of six months or less in some cases) of similar properties making adjustments for differences between the subject property and the comparable.
Below is a segment report for home sales in Ford’s Colony , Williamsburg VA. ( Jan 2011-Dec 2011) It shows both the sold price and the James City County Assessed Value. You can see from the chart that only two of the homes sold for more than assessed value ( +10% and + 3%) the remaining homes sold for an average of 17.27% below James City County assessed value.
We are do for a change in assessments for 2012 so the numbers will be closer after correction. Remember that this is a report for a very narrow market segment and it varies widely from neighborhood to neighborhood.
One other thing to consider, the assessor has most likely NEVER been inside the home. A home in the upper price range could have drastic differences in trim, finish levels and upgrades. In many instances homes were sold with unfinished bonus rooms or basements. If homeowners finished then off later without permits the county or city assessor will not factor that in to it’s assessed value. Its very common to see square footage errors in tax records as well.
How often are properties in Williamsburg, VA re-assessed for tax purposes?
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This is a question that is frequently asked, the answer depends on whether or not you live in the "City of Williamsburg", James City County (those home always also have a Williamsburg address) or York County (could be a "Williamsburg" mailing address or a "Yorktown" mailing address). If you live in James City County, property tax assessments are done every two years on even numbered years. Our tax rate has remained at .77 cents per $100 of tax assessed value since 2006 it was .87 from 1996-2002. For specific information on James City County tax assessments, please click here. |
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Example: $300,000 home x .0077 [tax rate] = $2310.00 property tax per year .
York County residents are also assessed every two years on even numbered years. The tax rate for York County residents is .66 cents per $100 of assessed value. Click here to see the process for York County tax assessments. To look up a specific property’s tax assessment in York County please go here.
Example: $300,000 home x .0066 [tax rate] = $1980.00 property tax per year .
If you are a resident of the City of Williamsburg, your assessments are done every year. At the end of October of every year, the city has completed their review of assessments and posts them. Click here to see the exact process for the City of Williamsburg’s tax assessment process. The tax assessments for 2012 are certainly available at the City of Williamsburg’s website. You can go here for current tax evaluations for the city. The tax rate for the City of Williamsburg is .54 cents per $100 of tax assessed value.
Example: $300,000 home x .0054 [tax rate] = $1620.00 property tax per year .
How do these rates compare to the rest of Hampton Roads VA ?
How can a property be assessed for more than its purchase price?
Another question I get asked , if I get a heck of a deal on a home in James City County, Williamsburg or Yorktown VA will the taxable value be reduced to what I paid ?
Real Estate may be assessed for more than the sales price because the assessment reflects "fair market value." Fair market value is not necessarily the price paid for a piece of real estate, but rather, what it is worth on the real estate market. A sale may be below fair market value, for example, if the owners are in financial distress and need to sell quickly, lowering the price beyond what they might otherwise accept. Selling a property at an amount simply sufficient to cover the mortgage would be another example of a distress sale not at fair market value.
You can appeal if you are not happy with your assessed value but the assessors office is using an average of sale prices in the immediate area. You may have gotten a home for $200k less than assessed value but if all the other homes around are selling for close to assessed value that’s where your value will be pegged.
If you want to appeal your assessment, the first step is to call the County Tax office 757-253-6650, and an explanation of the assessment will be provided. After this initial conversation if you still believe that the assessment does not represent fair market value, or you believe that your property is not treated equally with other similar properties, you may request a departmental review
During the departmental review, the appraiser will meet with you and make an inspection of the property to ensure the data on your property is accurate. The appraiser will also conduct a sales analysis utilizing recent sales of comparable properties, as well as verify the equity of the assessment of your property and the assessments of other similar properties.
If you are still not satisfied with the outcome of the departmental review, an application to appeal the assessment may be made to the James City County Board of Equalization. Read more about the process here
Your best source for determining the market value of your current home, or whether the asking price of a home on the market is reasonable, etc. is to work with a Realtor. Our job is to help you analyze the market, the home in question, and provide education about the purchase or sale you are considering.
Like what you are reading ? Want to receive updates by email in the future ? Sign up here  psst … I’m a Realtor! Thanks for stopping by my website. I would love to help you find your dream home and community in the Hampton Roads or Williamsburg area or to sell your existing home. This post was authored by local resident and REALTOR, John Womeldorf. John is known around town as Mr. Williamsburg, for both his extensive knowledge of Hampton Roads and the historic triangle, and his expertise in the local real estate market. His websites, WilliamsburgsRealEstate.com and Mr Williamsburg.com were created as a resource for folks who are exploring a move to Williamsburg, VA , Hampton Roads VA and the surrounding areas of the Virginia Peninsula. On his website you can search homes for sale , foreclosures, 55+ active adult communities, condos and town homes , land and commercial property for sale in Williamsburg, Yorktown, New Kent, Poquoson, and Gloucester, VA as well as surrounding markets of Carrolton, Chesapeake,Gloucester, Hampton, Isle of Wight, Portsmouth Mathews, Newport News Norfolk, Poquoson, Smithfield, , Suffolk, Surry, Va Beach, Yorktown and York County Virginia
You can reach John by email John@MrWilliamsburg.com or phone @ 757-254-8136 |
Filed under: james city county virginia, Taxes, williamsburg va |
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