You've Got Bad News & Good News -- Which Do You Want to Hear First?

It was the best of times.  It was the worst of times. 

So began the classic Charles Dicken novel "A Tale of Two Cities."  When a friend comes to you proclaiming that he's got some bad news and some good news, which do you want to hear first?  Is the glass half full or half empty?  In the immortal words of Guns N'Roses Poison, "every rose has its thorn, just like every night has its dawn."  And they say that every cloud has a silver lining.

Okay, enough with the clichés.

If you own a home in Northern Virginia (like I do), you likely received or soon will receive your Notice of 2008 Real Estate Assessment from the county or city were you live.  

Bad news first:  more than likely the value of your home declined.  In the City of Alexandria, for example, residential condominiums declined an average of 4.3% from 2007's assessed value.  Single family dwellings decreased about 1% on average.  Overall, the Department of Real Estate Assessments in Alexandria shaved an average of 1.9% off of everyone's home value for 2008.

Good news:  you will pay less property tax in 2008 than you paid in 2007.  That's little compensation if you plan on selling your home or your adjustable rate mortgage has adjusted, but for some the savings could be significant.

Additional good news:  values in close-in areas of Northern Virginia including Alexandria, Arlington, and Falls Church were more stable and declined only slightly compared to other more distant suburbs.

Each jurisdiction in Northern Virginia sets its own real property tax rate later in the year during their budgeting announcement.

There's also a chance to appeal your tax assessment if you believe the value is incorrect.  Click here for more information on appealing tax assessments.

I'm a glass full type of guy.