If you think your neighbor’s foreclosure doesn’t affect you…
January 24th, 2008 - Categories: Financing, Selling a home in the Dothan area
By: Charles Woodall
Managing Broker
http://www.dothanhomesearch.com
Think again. We?ve yet to see a significant increase in foreclosures here in Dothan. I think we will. And even if you are current on your mortgage and are set to ride out the storm, the ripple effect foreclosures have on the market can have some impact on you and your home.
Terry McDonald, fellow real estate blogger, had an excellent overview of this subject a few days back. There are basically two ways this can affect you, the average Dothan home owner.
It will affect you if you are trying to sell
Foreclosures typically sell for less than true market value, occasionally significantly less. And a high number of foreclosure sales will only exacerbate the problem. When foreclosed properties selling for 80 to 90 cents on the dollar in a neighborhood increase, all other homeowners will begin to lose equity, and in turn sale price, because appraisals will start coming in lower.
It will affect your property taxes
As resale value is lowered, there is the possibility that come property tax time, assessed value will be lowered. While everyone likes to pay less in taxes, widespread decreases mean less tax base, which means less money in government coffers for schools, public services, etc.
Terry brings to light other effects as well. Take a couple of minutes to read his post.
Possibly Related Posts
- All I can say is “WOW”
- The Truth about the Dothan real estate market
- Dothan foreclosure numbers going up?
This entry was posted on Thursday, January 24th, 2008 at 8:16 am and is filed under Financing, Selling a home in the Dothan area. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
‘Very good points, for Crofton homeowners in Maryland, as well as your readers in Dothan. Not sure the tax assessors in our neck of the woods will take foreclosures into account, though, in establishing assessed values. If they do and assessments go down, I’m sure our tax rate will go up to assure government revenue isn’t reduced.
Our tax assessment doesn’t happen until late in the summer, so it will be interesting to see what happens. I can just imagine how many people are going to balk when theirs comes in the mail.