Question: How close are the County’s tax assessments to actual market values?
Answer: Earlier this month, Arlington announced that the next round of annual tax reassessments would increase the total residential assessment by 4.5% (this is overall, changes to individual home/land values will vary significantly). This change is meant to align with the increase in market values of Arlington homes, but assessed values remain well below actual market values for most homes. In fact, 81% of homes sold in 2022 sold for more than their most recent tax assessment value.
Homes in Arlington that sold in 2021 sold for an average of 8.7% (median 8.4%) above their most recent tax assessment.
Homeowners in the 22205 zip code benefit the most by underassessments, for a second year in a row, with an average difference between 2022 sold prices and their assessments of 14.8%, or over $194,000. Owners of single-family homes and townhouses (12.9% average difference) benefit more from underassessments than condo owners (4.1% average difference).
If County assessments were representative of actual market values, the average Arlington homeowner would pay over $900 more per year in property taxes, so don’t forget to send the Department of Real Estate Assessments a thank you card!
The following chart details the difference between how much a home in Arlington sold for in 2022 compared to its most recent County-assessed value:
If you believe that the County’s assessment of your home’s value is too high, you have the right to appeal the assessed value; the deadline is March 1.
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.
If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.
Video summaries of some articles can be found on YouTube on the Eli Residential channel.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.