Loudoun County Real Estate Statistics and News

The Discrepancy Between Loudoun County Tax Assessments and Fair Market Value.

Everyone knows that Loudoun County real estate property values have gone down significantly over the last several years, including 2007. For everyone's sake, I hope that the Loudoun County Tax Assessor realizes this as well when computing 2008 tax assessments. Everyone we've talked to in Loudoun County is upset about their assessed value and most are worried that their 2008 tax assessments will not be in line with their fair market value. The people who are even more upset are those who appealed their tax assessments earlier this year and were completely shot down without a good, if any explanation.

Yes, they're upset because they've lost market value. But why are they really upset? Because 2007 assessed values are up to 30 percent higher than current market values (non-foreclosures or short-sales) and they think that the Tax Assessor doesn't care. That means that Loudoun County residents are paying up to 30 percent more in taxes than they should.

For example, the property located at 904 Amelia Street in Sterling, VA just sold for $276,450 net. It was assessed at $392,200. That's a $115,750 (30 percent) discrepancy between assessed and market value.

In the FAQ section of the Loudoun County Tax Assessor's web site, it states:

"Information is gathered from buyers, sellers, and real estate professionals. The bonafide selling prices are then compared to the assessed values to arrive at an assessment/sales ratio. The county is required by law to assess at 100% of fair market value."

Neither myself nor any consumer, real estate agent or broker I have run across has been contacted by the Loudoun County Tax Assessor regarding their opinion, expertise, stats or data regarding Loudoun County real estate market values.

This discussion brings to a poll we'd like for you, the consumer and real estate professional, to take. Though values vary by specific community, this will give us, you and the Loudoun County Tax Assessor a general idea of what the residents of Loudoun County think about market versus assessed values for 2008.

Related Articles:

Loudoun County Set To Steal $45 Million From Residents In 2008

*This post was edited 12/29/07 because it was brought to our attention that part of the post could be misinterpreted and those items have been deleted.

Thursday Poll - The Down Real Estate Market and Holiday Spending

Thursday Poll - The Fed's Rate Cut and Your Decision To Buy A House

The Fed recently cut their rate by 50 basis points and the cut has had mixed reviews.  Although many say that the cut wasn't due to slowing buyer demand, we're curious as to whether it has had any impact on your decision to buy a house.

Thursday Poll - What did the Mortgage Crisis do to Loudoun County Home Prices?

In the third quarter of this year, the biggest story in real estate was the Mortgage Crisis.  And while the majority of the attention was given to sub-prime loans, the rates for jumbo loans (mortgages over $417,000) spiked up during this time period.  And with the majority of homes in Loudoun County priced in the Jumbo category, we are wondering what impact it will have on prices in Loudoun County.

So the Thursday Poll this week asks the question:

We will publish a post giving the actual change in median prices in the beginning of January.

And yes, we forgot to publish the poll yesterday (Thursday). But better late than never.

Thursday Poll: Pick an Agent

In the last 12 to 18 months, the Internet has surpassed print advertising as the number one source of real estate marketing in many areas of the country.  Loudoun County is no exception.  The print ads in the local papers keep dwindling and the number of websites offering listings to search keeps growing.

And with that shift, there are many more online resources available for buyers and sellers of real estate to use in their search for a real estate agent.  However, these resources are not as obvious or informative as some of the sites that show properties for sale.  It takes a little more creativity and investigation to research a real estate agent.  Unfortunately a photo of an agent isn't going to tell you what you want to know the way a photo of a kitchen will.  And there is no single resource available that can give you answers to questions like expertise, marketing resources, neighborhood knowledge, negotiating skills, etc.

But there are ways to use the internet to get a better picture of an agent than "They have a nice sign" or "They helped by aunt and uncle find a house 6 years ago". 

So this weeks poll asks the question (multiple choice):

A lot of these choices are easy to use and can be very helpful in getting a better picture of an agent and their business.  Others, however, are a bit more elusive.  But there is a new website that will allow and agent to provide a wealth of information to prospective buyers and sellers.  Here is a link to my profile on this new site, clipREAL.com

Thursday Poll - The Solar Home

There is no end to the number of articles, books and movies regarding the earths resources and how we are using up more than can be replenished.  From Al Gore's "Inconvenient Truth" to Leonardo DiCaprio's "The 11th Hour", the issue of Global Warming is probably the single biggest concern for humans.  We as Americans represent 5% of the world's population yet we consume 33% of the paper, 25% of the oil, 23% of the coal, 27% of the aluminum and 19% of the copper.

We read these statistics and they do not surprise us.  But what can we do to not only reduce our consumption of these resources, but perhaps even save money doing it?

This is the question that leads us to today's poll:

If you are interested in solar energy for your home, here is a great place to start - SolarHome.org

Thursday Poll - Will Life Be Better Next Year?

Last week's poll asked the question "Is life better this year versus last year?".  The results were very balanced.   You can see the results by going to last week's poll and clicking View Results.

This week's question piggyback's on last week's by asking the question:

Thursday Poll - Is Life Better Than It Was A Year Ago?

Watching CNBC this morning, there were a lot of talking heads saying that the stock market was in turmoil, but that the economy was doing fine and that the only thing to worry about was the credit crunch for lenders such as Countrywide.  The Federal Reserve has used the strength of the economy as a reason for not lowering interest rates. 

I am thinking that there is a disconnect between what they think is happening to the actual people of America and what their numbers tell them.  As a real estate agent, I know that I am not doing as well this year as I was last year and that is the case with most of my fellow agents.  I also don't see the future looking too bright.  But maybe I'm wrong.

This weeks poll asks the question:

Thursday Poll - Guess the Interest Rate

On Tuesday the Federal Reserve held interest rates steady at 5.25%.  Actually, the only rate the Fed held steady was the Fed Funds Rate, the rate that banks charge each other to borrow money on a very short term, usually overnight.  The direct effect on the general public is virtually nothing, but the indirect effect is tremendous. 

All interest rates in the U.S. are affected by the Fed Funds Rate including mortgage rates.  More important than the actual rate is the direction of the rate.  The current rate has remained unchanged since August of 2006.  And the Fed has made no indication of lowering it or raising it in the near future.

Unlike the Fed Funds Rate that moves very infrequently, the rates on mortgages move daily.  This is because mortgage rates are directly affected by market conditions and market forces.   Therefore, in the course of a year when the Fed Funds Rate hasn't moved, mortgage rates have varied significantly.

Other factors that affect mortgage rates including the type of loan you get.  The longer the fixed length of maturity, the greater the fluctuation in rate.  A 5/1 ARM will typically vary less from day to day than the interest rate for a 30 year fixed mortgage.  Location of the loan is also a factor.  If the foreclosure rate of a location is increasing or unemployment is increasing you can expect rates to move faster in that location than an area with less risk. 

It is always good to know where interest rates are in your relative area.  Here in Loudoun County, the majority of homes will be purchased with a jumbo loan versus a conventional loan.  A jumbo loan is defined as a loan that is larger than $417,000.

And because of the backlash against ARMs, we are seeing a lot more families opting for a 30 year fixed rate mortgage.

So today's poll asks the question:

Follow this link to find the answer

Thursday Poll-How Much Research Time Would You Need Before Actually Putting Your House Up For Sale?