Quote:
Originally Posted by ajbrown
I think you can be right on both sides if the paying off the bond issue from a financial perspective. IMO, it depends largely on your risk tolerance. I am not advocating either way, but a point to consider (just one in many) is that this may not be a benefit to all buyers, as the assessed value for future taxes has changed.
As an example, lets say my neighbor and I both paid $200,000 and we owe $20,000 on the bond. We both sell at the same time. Both homes go on the market, mine for $200,000 + $20,000 for bond, theirs for $220,000.
My home for the new buyer will be assessed at $200,000 versus the neighbors will be $220,000.
Not the deciding factor, just another line in your matrix when deciding to pay. My issue is that the first question in the matrix is: Do you have $20,000. I cannot get past that one 
BTW, lots of threads on this subject in TOTV archives... |
I am not sure about in Florida but I "think" in general the assessed value is not merely based on the amount you paid, but more so on the market value of your home as compared to nearby similar properties. Now if you challenged your assessment based on a declining market the cost of the home might be a more important factor. I would like to hear more on this from someone who deals with this issue in Florida please.
Your idea raises interesting points... Why does the seller not include the bond in the cost of the home? Does that effectively reduce the "Price" of the home thereby making it easier to get an appraisal that justifies the price for mortgage approval and reducing the amount of the down payment? Does it lower the initial assessment because it is more likely to be based on the cost of building where there are not similar properties, thereby effectively making homes built in TV more tax affordable until they are at least reassessed than ones that include the cost of infrastructure in the initial purchase price? I assumed there were reasons to have a "bond".. and the more I think about it the more interesting it becomes. I am sure there are other ramifications I have not thought of. Please help with more ideas. Thanks.