Hello and welcome. This is Nolan with DiscoverNChomes and Nolan’s News and I’m going to give a shout out to the letter B for Brunswick County and we’re going to talk about our recent tax reevaluation.
I have had probably two dozen clients call me and say “Nolan what is going on? Why are my values so high?” So wanted to kind of get into the next step, what a tax reevaluation is.
It’s exactly what it means. Every so often, eight years, sometimes it’s sooner, sometimes it’s later, the county does a reevaluation of our home values. The last one that was done in Brunswick County was in January of 2019. This was right before our huge COVID influx in values in the market.
So those values today are pretty much irrelevant for what’s happened over the last few years. So when things are reevaluated Brunswick County looks at three different things.
They do first, what’s it called a sales comparison approach. Very easy and straightforward. This is what brokers do. They’ll look at what’s sold around the home and compare it to similar homes within that community or that area.
Second approach is called the cost approach. Cost approach is pretty much exactly what it means. What does it cost today to restore the cost (the cost today to reproduce your home)? Another bad thing for our values with construction having gone up so high. That’s also going to increase what our values look like.
And thirdly, which is just basically for income producing properties. They look at what the rent is that’s now coming in, which again, rental over the last few years has increased dramatically. So that’s also going to pull our values up.
Historically in Brunswick County, when we have a reassessment done, either the tax rate will lower and our values will increase or the opposite happens. Our values in a down market will decrease, but our tax rate increases. So it’s always been kind of a leveled out sort of thing.
This time around though, our tax rate is staying the same. And on average, folks have seen anywhere from a $200,000 to a $350,000 increase in the revaluation. I’ve got a number of calls saying no one is this accurate. No one is this correct.
So far, I’ve looked at a few numbers. They are pretty dead on with what’s been going on in our marketplace. So, unfortunately, we can’t really help because you have a certain time period to appeal your new evaluation. But I can’t produce numbers that will help decrease your evaluation.
So not the greatest thing in the world because taxes have gone up, but our values have gone up. And I think it is very legitimate this time around.
So just want to throw out there. If you do want any help, I will be more than happy to run an analysis on your home. Please call us with any questions. Sorry for the taxes going up, but it is a reflection of our new marketplace. Alright, thank you so much.
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About Nolan Formalarie
Nolan Formalarie has been in the North Carolina Real Estate Industry for over 8 years and enjoys every minute of it. He is involved in every aspect of the industry including selling and purchasing residential property, home watch services, property management, association management and construction.
