When it comes to real estate values, the news the past several years has been mostly bad. This fact has produced continued pressure on the City’s budget. However there’s one story hardly anyone talks about. Maybe you’ve noticed quite a few new homes being built in Falls Church. There seem to be as many “roll away dumpsters” in sight as there were back in 2005-07. This is a great story with long-term, beneficial implications. According to the City’s Assessor’s Office, just over $18M in assessed value was added last year which means $231K in new revenue for the tax year that starts July 1st. For 2011, the City estimated an increase of $15.5M in assessed value and $197K in revenue. New construction and similar renovations should continue and will help relieve the pressure on the overall tax base. So how come hardly anyone is talking about this?
An example is the new house built last year at 300 N. Virginia Ave. Previously there was a 1951 cape cod assessed in 2011 for $512K. Once the new house was built, the property was re-assessed based on the new dwelling. The 2012 assessment is $1.223M, more than double the previous assessment. The key thing to remember is that this not a one-time event but a permanent addition to City coffers. From now on, this property (and other new homes built last year) will provide a lot more (often twice) tax revenue. This also applies to properties that do major renovations, such as additions and finished basements. Furthermore, Falls Church still has a large inventory of older homes that are ideal candidates for renovation or new construction. As the economy continues to get stronger, we will see more of these improvements. That’s because when owners make such a large investment, they’re confident doing so in a place like Falls Church City with all the strengths it has.
Note: The above revenue #s only apply to residential property.