Many of our residential clients and realtors aren't too happy about the new MLS rule effective October 15, 2012, where residential home sales prices will now be disclosed. No more Z sales! The two main objections have been: 1) an immediate increase in property tax value because the sale price is significantly higher than current DCAD value and 2) the concern that the sale price, if considerably less than last list price, will negatively affect comps in the neighborhood.
If the alternative is for DCAD to use the last list price as the new appraised value, the new rule is a good one. Appraisers need the comps to value homes for lenders, homeowners need comps to assist in pricing their homes, and buyers need comps to help them determine value for a property they are looking to buy. Of course, the appraisal district needs them to tax residential property properly!
Here is what REALLY BOTHERS ME! This same rule needs to apply to Commercial Real Estate sales, e.g. the 55 story office tower sales, the large multi-family transaction, the land sale in the Design District. Commercial property owners need to share the property tax burden fairly instead of laying it off on homeowners. Let's level the playing field; if a Commercial Seller makes $25 million in profit on a sale, does not have to publish the sales price, and the property is valued by DCAD far below market, how is this fair to the City of Dallas, Dallas County, and the homeowner? Maybe the tax rate could be reduced if everyone played by the same rules. Just sayin'...
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