Will a Decrease in Market Values Result in Reduced Property Taxes?

July 6, 2009

Residential

Blue skies on the bean in chicago

Blue skies on The Bean in Chicago

Don’t count on your property taxes dropping as a result of reduced market values. 2009 is a reassessment year for the City of Chicago. The Sun Times recently reported that homeowners in portions of Rogers Park received notice that the assessed value of their property has decreased up to 6.1%. While that news may seem very positive on the surface, assessed value is not the only factor used in determining property taxes. Two other factors, including the tax rate and equalization factor, along with a multitude of government agencies, all have an impact on your final tax bill.

Reduced Market Value Doesn’t Mean Reduced Property Taxes

In addition, assessed value and market value have very little in common beyond the property address. While market values have decreased as much as 20% in some areas since the last assessment in 2006, however don’t expect your assessed value to decrease accordingly. County sources state that Chicago has not seen a decrease in assessed value in recent history, and that the decreased assessed values are difficult to award if the market value is expected to rebound before the next assessment year in 2012.

So, the bottom line is this – pay your taxes, contest them when possible, and use every city service available to you to the fullest extent!

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About Stacy Braack

Stacy is a seasoned real estate professional with a broad range of hands-on experience including first time buyers, investors, luxury homes, and distressed properties. While this may appear to be a scattered set of expertise, she believes the experience provides maximum effectiveness in today’s chaotic market, which requires extensive knowledge of all aspects of the industry. Stacy’s educational background includes a BS in Industrial Engineering from Stanford University and an MBA in Marketing and Finance from the Kellogg Graduate School of Management. Professionally, Stacy has done everything from operations consulting to city government before she found her passion in real estate almost eleven years ago. It is this passion that drives the most benefit to her buyers and sellers. She is fully committed to your goals – both financial and personal. Her clients describe her as extremely direct, honest, and responsive, and they repeatedly trust her to handle one of the biggest events in their lives. For buyers she works non-stop to find you both a home you will love to live in and one that is a smart investment. Many of her 2008 buyers have realized instant equity in their new homes through ‘pit bull’ negotiation skills. While the market has been tough for sellers, her listings have sold at a rate above that of the market. Extensive, constant, and extremely high-quality marketing, including both print and internet mediums, support every listing, from investment studios to luxury penthouses. She believes that your goals are her priority and her full-time job. She has built her business on referrals from satisfied clients, and she would love to add you to that list. You can contact her at 773-405-4431 or stacy.braack@sothebysrealty.com

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