<p>Property taxes in WA seem to run around 1% of full assessed value, the big issue is that values can spike crazily and there is no protection for long time home owners who did not engage in exuberant overspending. So, a formerly $250k home is all of a sudden assessed at $1,000,000 and the owner gets a $10,000 tax bill.</p>
<p>In our area reassessments are done every four years, if you were in the quadrant with a new assessed value for the taxes due this April, your value was based on the home values as of Jan 2008, which were still pretty crazy up here, so even if they acknowledge that the value is no longer that amount, even if homes in your neighborhood are selling at 30-40% less, too bad, soo sad, pay up.</p>
<p>I have read a lot of news articles about people up in arms about this. Reminds me of prop 13 in CA which limits property value to the purchase price with only 1% increase allowed per year. Of course many in our parents generation have a strong incentive to stay in their home for 40+ years and pay $1000 annually whilst neighbors are paying $10,000</p>
<p>Our real estate taxes vary by community- ours are more than $2,000 per $100,000 here (assessed differs from fair market value and other manipulations change things locally). State sales tax 5% plus some areas 1/2% more. Plus income taxes. But our state public K-12 and above schools are good. The cost of comparable houses also varies by area- prices much lower in some parts of the state and lower than other areas of the country. Reassessments are required per the state- every 10 years? From my tv viewing of home shows I can't believe how much some people pay for so little.</p>
<p>Our taxes are about $2,800 per real market $100,000 of house value. No state income tax. 8.something% sales tax (depending on the city) on most everything but food.</p>
<p>The services we get for these taxes are good - the huge majority of it for school district, but once you no longer have kids in the schools, you look at that $7000 that goes to the school district with a different eye than we did when we had 3 in school.</p>
<p>We're in the same boat with an empty nest, though ours is right-sized for two people, being relatively cozy back when three kids were in house.</p>
<p>The only argument I see you making against downsizing is that you won't make much profit for 15 years of ownership. My counter is that your downsized new place will cost less too, because of the market decline. Meanwhile you will start making money instantly from lower taxes and utilities. If you locate to a favorable commute for your husband, he'll be happier, and you will save on gas and new cars as well.</p>
<p>Having a roomy nest for the kid(s) to move back to after college graduation is not so much a good thing. I know some people who just quietly sold the empty nest and moved into a nice one-bdrm condo to avoid that situation when it appeared likely a year before graduation. Made it impossible to say anything but "no," so the issue never came up.</p>
<p>I totally understand the reluctance to change things, if you have memories wrapped up in that house and location.</p>
<p>Another reason not to downsize, every year we descend on my parent's house - they're still in a big old 4br, 3bath 3living area house while they're pushing 80 - it's just so nice for the family to have a "home base".
Ideal would be for us to buy parent's house some day. All we need is another million in equity!</p>
<p>Most of our county hasn't been reassessed since 1955. We live in a house built in 1924, I'm pretty sure if we ever have a countywide assessment we'll be one of the losers. I like our house, and it would be hard to downsize even though it has three bedrooms and two finished rooms in the attic as well.</p>
<p>Our county assessor has a "great" (for them!) GIS database that connects every property with similar sales each year. It's a pretty good market value (for the end of the previous year). We protested one year but they countered with many nearby sales that pretty much upheld their view of the value. Every property is updated every year. Quite frankly if I lived somewhere where properties hadn't been updated since the 50's I'd be unhappy - how do you know you aren't paying more than your share?</p>
<p>Dragonmom, if its done right, like ours is, what they do is take a formula based on current sales price of houses sold/ 50s assesemnt and then "equalize" old properties. Yes, we have GIS database too -- sounds pretty similiar except terminology.</p>
<p>The real problem is our commercial base, which is mostly retail, is dying. More people, less business to support schools.</p>
<p>According to the equalization rate our house is worth a lot less than I think it would sell for, even in the current economy, so yes, I think I'm undervalued. :) As an architect, I pay attention to sale prices in our town and all the assessor's info for every house in town is on line, so I know what taxes people pay all over town.</p>