Could more real estate auctions in NY help lower your property taxes?
2016 has seen an increase in real estate auctions. What’s driving the trend? What is the impact on taxes for neighbors?
Recently there have been questions about the direction of the housing market. This is especially true in hot areas states like New York. An increase in auction activity may back up some of these fears, and show the urgency sellers are feeling to shed homes before a new bubble bursts.
There may be a number of trends fueling auctions including higher interest rates, storm activity, the lengthy foreclosure process in NY, fears of the election and housing market, and more. There are an abundance of properties which go to auction in New York every year. These may be estates, bank foreclosures and REOs, property tax sales, or just creative selling and marketing tactics by sellers and NY real estate agents.
2016 saw a number of notable properties go to auction. This includes Donald Trump’s childhood home in Queens. A two acre estate in Lloyd Harbor with an opening bid of just $899,000. It previously sold for almost $2M. A bank auction of a 6,000 square foot Water Mill home is being held at the Southampton Town Hall in October 2016. The mortgage lien is $2.6M. Similar neighboring homes have been marketed for up to $6M.
RealtyTrac notes that New York foreclosure rates have been pretty high in 2016. Suffolk County has the 5th highest rate of foreclosure. Nassau isn’t far behind. While pre-foreclosures may be dropping, RealtyTrac reports bank owned properties soared 11.9% in July, and auctions rose 8.7%.
If your neighbors’ homes are selling cheap, then it can drag down your home’s value as well. That should translate into a reduction in your tax assessment and property tax bill. Of course rarely do declining bills and assessments seem to be addressed as fast as increases. If those homes are then only flipped for higher prices by investors then bills could go up even further.
If you aren’t sure you are getting a fair bill get in touch with Property Tax Adjusters, Ltd. on Long Island and have your situation and options for reducing your taxes reviewed.