2 — Friday, August 30, 2019
Albrecht Enterprises . . . . . . . . . . . . . . . . . . . . . . . . .page 9
Alpine Meadows . . . . . . . . . . . . . . . . . . . . . . . . . . . page 13
Blue Summit Realty . . . . . . . . . . . . . . . . . . . . . . . . .page 6
Century 21 Eagle Cap Realty . . . . . . . . . . . . . . . . . . .page 8
Columbia Basin Board of Realtors . . . . . . . . . . . . . . . page 12
Country Financial . . . . . . . . . . . . . . . . . . . . . . . . . . .page 9
Countryside Sheds . . . . . . . . . . . . . . . . . . . . . . . . . .page 7
Fairway Independent Mortgage . . . . . . . . . . . . . . . . page 13
GCT Construction . . . . . . . . . . . . . . . . . . . . . . . . . . page 14
JC Woodworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 10
John J. Howard and Associates Real Estate . . . . . . . . . .page 7
La Grande Paint & Glass . . . . . . . . . . . . . . . . . . . . . page 10
Northwest Furniture & Mattress. . . . . . . . . . . . . . . . . .page 9
Ranch-n-Home Realty Inc. . . . . . . . . . . . . . . . . . . . . .page 6
Real Estate Associates . . . . . . . . . . . . . . . . . . . . . . . page 10
ReMax Real Estate Team . . . . . . . . . . . . . . . . . . . . . .page 3
Ruby Peak Realty . . . . . . . . . . . . . . . . . . . . . . . . . . page 11
Timberline Realty . . . . . . . . . . . . . . . . . . . . . . . . . . page 13
Valley Realty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 5
Landlord Lore: 5 Myths About Renting Out Your Home
You Should Stop Believing Immediately . . . . . . . . . . . . . . . . . . . . . page 3
How to Buy Land: Tips to Pick the Perfect Plot . . . . . . . . . . . . . . . page 12
7 Things I Hate When Renting Other People’s Homes on Airbnb . . . . page 14
NORTHEAST OREGON
REAL ESTATE
NORTHEAST OREGON REAL ESTATE
A message from the
Northeast Oregon
Board of REALTORS®
One of the things REALTORS® hear
often in our local market is “what is going
on with the property taxes?” As a home-
owner (or future homeowner) it’s important
to understand how taxes affect you now and
in the future.
Let’s start with purpose. Property taxes
are one of the main (if not the main) sources
of income for our cities and counties. These
taxes fund schools, police and fi re depart-
ments, public works, libraries, and many
other important facets of local communities.
There are locations in our country where
there are little to no property taxes taken,
and in these areas, statistics show lower
reported quality of life than in more highly
taxed locations (realtor.com, “Temped to
Flee high taxes?”, June 22, 2016). That is
because the communities have little to no
budget to provide quality of life programs
for its citizens.
A desirable community is the goal for
most homeowners, but the real impact of
property taxes can drastically affect a real
estate market, as affordability is directly
affected by higher or lower property taxes.
When shopping for a home, REALTORS®
advise buyers to divide a home’s property
taxes by 12 months and add it directly to
their payment. Property taxes that are $4000
a year for a $300,000 home and property
taxes that are $2500 a year for a similar
home in a different location swing a buyer’s
payment by $125 a month! Awareness of
that is important for buyers to realize, as it
becomes a factor of prioritizing the lower
payment versus the offerings of more highly
taxed areas.
So, what affects property taxes? Ac-
cording to Les Masterson in his article for
realtor.com, there are fi ve common reasons
that property taxes go up: home improve-
ments, revaluation, nearby home sales, new
schools, and higher government budgets.
As you improve your home by adding
bedrooms, bathrooms, additional square
footage, or simply by remodeling the space
you have, you are adding value to your
Y
home. As property taxes are a refl ection of
your home’s value, it stands to reason that
this would increase property taxes. Discuss-
ing these factors with your REALTOR®
will help you move forward strategically as
you prepare to improve you dwelling.
Revaluation goes hand in hand with
this, however it’s more a result of a general
increase in value of your home and homes
nearby than it is of a specifi c improvement.
Nearby home sales are along this line,
though you have no control over this one.
If a nearby home sells for substantially
more than your home is valued, it can raise
your taxes as it’s assumed that proxim-
ity indicates similarity in value. You can
dispute increases of this nature, but as a
market improves, home sale values are
likely increasing for your home as well,
so it’s important to be mindful and discuss
this with your REALTOR® to make sure
any dispute of value would help your case,
not hurt it, depending on your long-term
residence goals.
The fi nal two factors, new schools and
higher community budgets, have a direct
and immediate affect on property taxes. The
passing of a school bond to increase taxes
and build a school in a specifi c district will
affect taxes for homes in that community.
This, and higher community budgets, can
certainly be felt by community members,
and the positive or negative affect this may
have on your purchase should be a topic of
thorough discussion with your REALTOR®
as you shop and consider which locations
are best suited to you.
As you begin your home search, be
aware of the areas you’re shopping in and
the property tax trends in those places. Your
REALTOR® is your most valuable resource
for this, as they have your goals in mind
and can point you to the areas most suited
to you.
Amanda May, Vice President
Northeast Oregon Board of Realtors