Note: To see analysis of the most recent HGTV home giveaways, please visit my new website Key Policy Data.
It was just announced that the winners of the 2011 HGTV Dream Home in Stowe Vermont have put their house up for sale . . . for a cool $3,795,000. However, this clip from the story makes you wonder if property taxes aren’t to blame:
The annual taxes on the home are $27,720, according to town appraiser Tom Vickery.
The town-appraised value of the house is $1,521,000 million; however, that’s based on 2005 selling prices and doesn’t take the furnishings and artwork into account. Vickery is working on a townwide appraisal and expects the home’s value to increase somewhat once the appraisal is completed this summer.
OK, so they are paying $27,720 in property taxes on a $1.5 million valuation. They have the house up for $3.8 million, which means the comps are indicating that the assessed value will “somewhat” increase by at least double! In that case, the property tax bill alone will be a whopping $55,440 per year. And that’s before utilities, maintenance, insurance, etc.
This is why I would advise any winner of these dream homes to take whatever cash you can and run . . . as I mentioned in my previous blog on the 2012 HGTV Dream Home in Midway, Utah.