I originally posted about 1415 June Ave. — in Golden Valley’s South Tyrol Hills neighborhood — last Summer (“$700k Below Tax Value“).
At the time, the asking price was $799,900 — against a tax assessed value of $1.504 million.
Thanks to that latter number, the home carries an almost $24,000 annual property tax bill.
Which likely explains why it’s still unsold almost six months later — and the asking price is now $784,900.
You’d certainly expect the property tax bill to drop dramatically once the home sells so far below its assessed value.
However, it’s not a slam dunk.
That’s because tax assessors consider foreclosures to be distress sales (true), and therefore not necessarily reflective of fair market value (patently false).
Put it this way: if anyone thought 1415 June was worth more than $784,900 . . . . they’ve now had almost two years to snatch it up (the home originally came on the market in March, 2009, at an asking price of $1.679 million).
To entice Buyers who can afford the home but not the attendant property taxes, here’s my advice to the bank-owner: pick up some or all of the property tax bill for a period of time.
Sellers now routinely pay up to 3% of Buyer’s closing costs.
In this case, what the Buyer really needs help with — at least temporarily — are the property taxes.