‘Most real estate professionals anticipated a significant increase in valuations,’ says the government affairs chair of a Realtor’s group.
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- Cumberland County homeowners are experiencing sticker shock as property revaluations reflect increased home values.
- While revaluations may cause concern, the actual tax increase will depend on the tax rate set by the Cumberland County Board of Commissioners.
- Homeowners have the option to appeal their property revaluations, but they should provide supporting documentation to justify their claims.
My wife and I were like others in the county when we received our county tax revaluation letters: Sticker shock. The increase in value from what we paid just a few years ago was nearly $110,000.
But we also cannot say we were totally surprised. Shortly after we purchased the home, our lender signed us up for an email service that periodically tells us how much our home is valued. We couldn’t help but notice the dramatic increases in the home’s value over time.
However, I took the increases with various levels of unseriousness because we weren’t looking to sell anyway, despite the umpteen calls I get to my phone from strangers looking to buy the house.
Cumberland tax revaluations always come with drama
Revaluations are conducted every eight years in Cumberland County, and they always come with some degree of drama because, let’s face it, nobody wants to pay more for the same place they’ve been living. Meanwhile, I have seen in the online commentary about revaluation that our old friend, Misinformation, has gotten a lot of folks even more riled up than necessary.
Some people posted that the revaluation notices were tax increases. In truth, we won’t know how our individual tax situation will pan out until the Cumberland County Board of Commissioners sets the new tax rate, which should be around late June.
The commissioners could set a tax rate that is “revenue neutral” or very close, meaning that we won’t see big tax hikes. Or they may not go that route. Ask ’em about it. They are elected officials who work for you.
I’ve learned something about politicians: They like sitting in those seats instead of being removed by the time-honored electoral tradition of “foot to butt.”
Realtor: Home values are up but he understands why some might be surprised.
So, do the price bumps on our revaluation notices track with what real estate agents are seeing on the ground?
Seems like “yes,” with a little “no” thrown in.
“Most real estate professionals anticipated a significant increase in valuations,” said Mark Dow, the Longleaf Pine Realtors Government Affairs chair, who answered my emailed questions. “Over the past eight years, the market has experienced appreciation, particularly from 2020 to 2022 when demand surged due to low interest rates and a housing supply crunch. However, the size of the increases in some neighborhoods has been surprising, especially for longtime homeowners who may not have followed market trends closely.”
Dow described Cumberland’s housing market as one of “steady appreciation” over the past several years. It has not tracked with the same rapid pace as larger metro areas like Raleigh and Charlotte, places that also are more susceptible to market volatility, he said.
Dow noted that while price growth has slowed down from its peak in 2021-’22, values are still up by a lot compared to the last revaluation in 2017.
He adds that higher tax-assessed value does not necessarily mean property tax rates will increase by the same percentage. When the county sets a new rate, it could offset some of the property tax increases, he said.
“Consulting with a real estate professional can help provide a more accurate market perspective for anyone considering an appeal,” he said.
So you think you might want to appeal?
For those of you mulling an appeal, the letters that went out Feb. 21 helpfully explain how you go about that process. The letters make clear that it’s best to have some documentation supporting your view. Like, say, if you have a recent appraisal lying around.
“Please note that simply stating ‘value too high’ will result in a no change in value decision,” the letter advises.
Elegantly stated.
On the appeal form itself (backside of the revaluation notice, y’all), we learn in the blue print at the bottom that the form is an informal appeal. If you get shot down in the informal appeal and want to do the whole shebang, you can file a formal appeal to the Cumberland County Board of Equalization and Review, the BER for those in the know.
Overall, I agree with Commissioners’ Chairman Kirk deViere that the county can reduce sticker shock by more frequent revaluations.
Somehow, I feel like there’s still gonna be some complaining. It’s the kind of recreation we all can do, and enjoy. For free.
Opinion Editor Myron B. Pitts can be reached at mpitts@fayobserver.com or 910-486-3559.
