2022 Property Tax Strategy for Sugarloaf Country Club

2022 Property Tax Assessment Strategy for Sugarloaf Country Club

Published May 17, 2022 Floyd Real Estate Group | FloydREGroup.com Mary Floyd | Mary.Floyd@Compass.com | 404.312.3837 Tony Floyd | Tony.Floyd@Compass.com | 404.406.7819 Information contained is proprietary and confidential. Not to be reproduced without consent of Floyd Real Estate Group. Information deemed to be accurate but not warranted.

2022 Real Estate Update 2021 was a record-setting year for Sugarloaf Country Club real estate and the beginning of 2022 continues the strong pace. However, recent weeks have seen some softness in Buyer demand for the first time since Covid-19 came on the scene. More on that in a moment. The combination of strong demand and very low inventory continued to fuel the seller’s market.

Properties that were updated (kitchens, bathrooms, flooring) and had desirable amenities (pools, outdoor living areas) closed very quickly - often with multiple offers. In 2021, we had 81 closings which was the highest ever recorded. 2006 and 2010 were the prior peaks of the market – 2006 before the real estate recession and 2010 as the height of foreclosures and short sales. The average $ per square foot in 2020 was $143. In 2021, the average $ per square foot was $183 – a 27.9% increase. In 2022, we have had 19 closings so far. The mix of properties includes higher price points than past years with the lowest sale being $1,280,000.

Nothing has sold under $1 million for the first time ever! If you take out a few anomalies, the average $ per square foot is $206 – a 12.5% increase over last year. The biggest story is the historically low inventory. Going into 2022 and for the first 3 months, we averaged 2 listed properties per month. In the last few weeks that increased to 8 properties listed. If you look at the details, at least half are listed at crazy prices and will not sell. No surprise, these properties are getting virtually zero showings. Listing at crazy prices is a bad strategy in any market. There is a better way to sell your property for the highest market value. Still – our listed inventory is ridiculously low for the Buyer demand that remains strong.

The good news is our home values have increased! The bad news is our home values have increased! Many of us received 2022 tax assessments that were considerably higher than we paid last year. Remember, based on the average $ per square foot from 2020 to 2021, our values increased 27.9% on average. Of course, these are averages and every home is different.

Our increase was 35%! However, this is not as bad as it may seem.

If you have the Homestead Exemption and Value Offset Exemption, Gwinnett County will freeze your county property taxes at the original rate regardless of the value assessment!

The only items that will increase based on your home value is Schools and School Board fees.

Schools represent around 61% of the overall tax bill so this is still significant. There are also charges for County Solid Waste (Trash Collection) and Stormwater Service. Those are not based on your property assessment and only represent about 3% of the total bill. You can view your 2021 Property Tax Bill by visiting this link: https://gwinnetttaxcommissioner.publicaccessnow.com/ViewPayYourTaxes.aspx Enter you address or owner name (last then first). Then click search. You will see some options. Select your property, then click on the parcel number for the detailed 2021 Property Tax Bill. You will see the section that shows whether you have a Homestead Exemption and Value Offset Exemption. You can also see the County Government Taxes section that will not increase. Then you will see the School Taxes that will increase. Compare these amounts to your 2022 assessment amount. That is going to be your true 2022 Property Tax increase. If you do not have you Homestead or VOE exemption, click this link to apply: https://gwinnetttaxcommissioner.publicaccessnow.com/HomesteadExemptionApplication.aspx

Tax assessments are generally based on local trends in the market. Those facts are not on our side. I looked at both $ per square foot and average sales prices. Average sales prices were more favorable to our case but still quite high. According to FMLS data, Gwinnett County average sales prices increased 25.5%. In zip code 30097, average sales prices increased 34.48%.

In Duluth, average sales prices increased 31.6%. It is no surprise that Gwinnett County is sending us significant property tax increases based on this kind of data.

The good news is that there are ways you can appeal your property taxes. As I stated before, Gwinnett County assesses values based on local trends. However, when you appeal your property taxes it starts to look more like an appraisal than local market trends. You can choose to appeal yourself or you can hire a local firm to help.

Here are a couple of options if you want to hire someone.

Equitax | 404.351.5354 | equitaxusa.com They charge $250 plus 25% of the first year’s savings or $150 plus 35% of the first year’s savings. This is the largest firm in this space.

Georgia Tax Appeals | 770.217.3267 | gataxappeals.com They charge $100 plus 40% of the first year’s savings.

ARE Solutions | 404.348.2650 | arpropertyexperts.com This is a smaller player. Adam Rosenfeld is the Atlanta contact. He does not charge an upfront fee but charges 33% of the first year’s savings.

The truth is that this is a tough way to make a living. That is why there are only a few players in this space. Most of them make their money on commercial projects and residential developments – not single family homes.

Can you do this yourself for free – YES! This takes some effort so you may not want to invest the time. Here is the online link to appeal your taxes.

https://www.gwinnettcounty.com/web/gwinnett/departments/financi alservices/taxassessorsoffice/propertyappeals Or just Google “Gwinnett County Property Tax Appeals” and you will see the Gwinnett County options. The number of days to file an appeal of an annual assessment in Georgia is within 45 days of the date located in the upper right-hand corner of the assessment notice.

Step 1: Click the Online Appeal Link:

Step 2: Identify your property by address, parcel # or your name. Click search to see the options and then select yours.

Step 3: Complete the Online Form (PT-311).

Step #4: Enter your appeal value and explain why you are filing an appeal. Here is where you make your case for a lower valuation. You have limited text so you need to be brief and to the point. Note: Your appeal value cannot be lower that your previous year value. If your new value is less than a 15% increase, you are probably wasting your time. Think like an appraiser who is using comps to support a value estimate. In your summary, use the high-level math in averaging the comps to achieve your lower valuation. In this case, you are looking for the lowest/ worst comps versus higher/ more valuable comps. Remember, this is a math exercise. See the list provided that shows all the properties in Sugarloaf that were sold in 2021. Look for properties in your price range and square footage range. For example, if you believe your property value is under $1 million you might choose 2681 Nutwood Trace. This sold last year for $729,500 for a 5,097 square foot home with a finished basement. This translated to $143 per square foot. Frankly this was an agent from Athens that did not understand Sugarloaf. They significantly undersold the property. You need 2-3 comps so you might also choose 2960 Sugarloaf Club Drive which sold for $843,500 with 6167 square feet ($126 per square foot) and 3233 Bagley Passage which sold for $790,000 with 6856 square feet ($115 per square foot). Appraisers will adjust for things like square footage variances, lot size variances, upgrades, pools, etc. You can look up any of these properties on Compass.com or Zillow.com to see the details.

Step 5: Attach supporting documentation.

You can screen shot the online pages for comps. If you need help, we can assist you with a printout from the MLS services.

Step 6: Enter your contact information.

Step 7: Sign your name, copy/ paste your signature key and click continue to submit. Then print a copy of your appeal for your records.

Step 8: After 3 business days, you can go back to the website to check on the status of your appeal. They are getting a lot of appeals so it may take longer than normal.

Frequently Asked Questions: Q. Can I appeal if my taxes only went up a small percentage?

A. You can try but you are probably wasting your time. Our values have gone up substantially. If you received an increase higher than 15%, then you may have a shot.

Q. This looks a little complicated.

A. If you feel that way, you are probably right. Might be a good option to hire one of the firms listed.

Q. What are the downside risks of appealing?

A. The county assessor has the right to visit your property and do a live assessment. If they determine your value is higher than the original assessment, you can get the increased assessment. If your square footage is understated in the tax records, you may not want to pursue an appeal.

Q. If I win my appeal, what happens next year?

A. If you win your appeal, your taxes will be frozen for the next three years. That is one of the biggest advantages of this process since we expect property values to continue to rise in the next few years.

Q. What else can we do to lower our future property taxes?

A. Get active in the political scene and support candidates who will pledge to control property taxes and spend wisely. We are all supportive of our local schools – but where is all this money going? Our governments are raking in record tax revenues and need to be very smart about spending. Otherwise, they will always find more ways to spend more of OUR HARD EARNED MONEY!

2021 Sold Luxury Homes for Sugarloaf Country Club Closing Date 1/5/2021 1/6/2021 2/1/2021 2/4/2021 2/8/2021 2/10/2021 2/10/2021 2/16/2021 2/23/2021 2/26/2021 2/26/2021 3/4/2021 3/4/2011 3/5/2021 3/11/2021 3/22/2021 3/23/2021 4/16/2021 4/19/2021 4/21/2021 4/27/2021 4/29/2021 4/29/2021 4/29/2021 5/6/2021 5/18/2021 5/20/2021 5/21/2020 5/25/2021 5/26/2021 5/28/2021 6/4/2021 6/8/2021 6/10/2021 6/11/2021 6/18/2021 6/23/2021 6/24/2021 6/25/2021 6/28/2021

Address 2825 Darlington Run 3272 Saint Elmo Court 3233 Bagley Passage 3540 Moye Trail 2817 Major Ridge Trail 3273 Saint Elmo Court 3160 Sugarloaf Club Drive 2616 Boddie Place 2960 Sugarloaf Club Drive 2679 Tranquilla Way 2251 Glen Mary Place 3300 Moye Trail 2725 Eudora Trail 2682 Tranquilla Way 2281 Bransley Place 2204 Taylor Grady Terrace 3430 Moye Trail 2533 Thurleston Lane 2681 Nutwood Trace 2742 Pinebloom Way 2673 Bonar Hall Path 2452 Delbarton Place 2827 Major Ridge Trail 3306 Moye Court 2556 Wynnton Drive 2908 Major Ridge Trail 2760 Sugarloaf Club Drive 2995 Sugarloaf Club Drive 2291 Glen Mary Place 2195 Lockett court 2494 Thurleston Lane 1704 Malvern Hill Place 2639 Boddie Place 2701 Lovejoy Circle 3278 Bransley Way 3083 Glen Mary Walk 2442 Delbarton Place 3010 Cypress Pond Pass 2804 Pebble Hille Pointe 3665 Moye Trail

Closed Price $1,675,000 $1,350,000 $790,000 $1,799,000 $1,000,000 $1,460,000 $920,000 $1,050,000 $843,500 $1,350,000 $840,000 $2,075,000 $1,250,000 $1,278,000 $1,300,000 $875,000 $1,725,000 $810,000 $729,500 $965,000 $1,350,000 $1,950,000 $1,185,000 $880,000 $2,040,000 $1,910,000 $1,325,000 $1,110,000 $1,000,000 $3,390,000 $1,450,000 $1,100,000 $950,000 $2,100,000 $1,243,250 $1,525,000 $1,825,000 $3,565,000 $1,600,000 $3,300,000

Square Feet 10,547 6,265 6,856 11,000 5,415 7,007 6,954 6,638 6,680 7,437 6,167 11,036 4,410 8,520 7,052 6,209 11,178 4,402 5,097 6,032 6,548 11,567 6,657 6,175 10,820 7,343 8,536 6,785 8,608 11,053

$/ Sq. Ft. $159 $215 $115 $164 $185 $208 $132 $158 $126 $182 $136 $188 $283 $150 $184 $141 $154 $184 $143 $160 $206 $169 $178 $143 $189 $260 $155 $164 $116 $307

7,396 6,811 12,936 8,750 8,540 10,738 22,595 9,691 12,316

$149 $139 $162 $142 $179 $170 $158 $165 $268

7/2/2021 7/8/2021 7/12/2021 7/15/2021 7/19/2021 7/20/2021 7/27/2021 7/29/2021 7/30/2021 8/10/2021 8/12/2021 8/12/2021 8/12/2021 8/13/2021 8/16/2021 8/19/2021 8/20/2021 8/24/2021 8/25/2021 8/27/2021 9/7/2021 9/10/2021 9/20/2021 9/21/2021 9/24/2021 10/6/2021 10/8/2021 10/12/2021 10/15/2021 10/19/2021 10/25/2021 11/1/1021 11/2/2021 11/5/2021 11/12/2021 11/30/2021 12/10/2021 12/16/2021 12/20/2021 12/21/2021 12/22/2021

3140 Sugarloaf Club Drive 1690 Sugarloaf Club Drive 2170 Sugarloaf Club Drive 2169 Wynnton Point 2376 Bransley Place 2876 Darlington Run 2234 Taylor Grady Terrace 2948 Major Ridge Trail 3055 Sugarloaf Club Drive 2442 Oak Hill Overlook 3065 Sugarloaf Club Drive 2756 Eudora Trail 2684 Thurleston Lane 2410 Sugarloaf Club Drive 2671 Lovejoy Circle 2764 Pebble Hill Pointe 2453 Delbarton Place 2741 Chieftain Run 2756 Callaway Court 3110 Wrightsboro Run 3165 Cypress Pond Pass 2760 Sugarloaf Club Drive 2278 Grady Ridge Drive 2758 Chieftan Run 2261 Glen Mary Place 2654 Nutwood Trace 2449 Oak Hill Overlook 2305 Sugarloaf Club Drive 3253 Saint Elmo Court 2569 Grey Moss Court 3195 Sugarloaf Club Drive 2920 Sugarloaf Club Drive 2470 Sugarloaf Club Drive 2576 Wynnton Drive 2241 Glen Mary Place 2885 Darlington Pointe 1800 Sugarloaf Club Drive 2960 Sugarloaf Club Drive 2673 Thurleston Lane 1685 Sugarloaf Club Drive 2678 Bonar Hall Path

$1,150,000 $850,000 $1,400,000 $1,640,000 $1,300,000 $1,350,000 $1,150,000 $2,200,000 $1,550,000 $940,000 $1,730,000 $1,425,000 $1,350,000 $1,050,000 $1,800,000 $1,550,000 $4,000,000 $1,345,000 $2,697,500 $1,150,000 $1,250,000 $1,525,000 $1,425,000 $1,350,000 $1,160,000 $1,270,000 $915,000 $1,500,000 $1,550,000 $1,000,000 $1,600,000 $1,650,000 $2,499,900 $1,759,000 $1,197,500 $1,850,000 $2,425,000 $985,000 $1,650,000 $1,510,000 $1,590,000

6,310 5,800 6,374 8,015 6,933 7,700 7,455 10,887 9,143 4,641 8,942 7,629 8,749 6,200 9,517 8,007 12,000 7,898 12,466 5,098 7,265 8,536 5,738 10,500 7,419 8,300 6,091 7,901 7,664 6,371 6,613 7,502 10,754

$182 $147 $220 $205 $188 $175 $154 $202 $170 $203 $193 $187 $154 $169 $189 $194 $333 $170 $216 $226 $172 $179 $248 $129 $156 $153 $150 $190 $202 $157 $242 $220 $232

7,451 9,034 9,060 6,680 8,487 9,265 7,555

$161 $205 $268 $147 $194 $163 $210

HOW DO YOU SELL YOUR PROPERTY FOR THE HIGHEST VALUE? Our exclusive Launch Marketing has consistently achieved the best results. In 2021, Floyd Real Estate Group achieved the highest values for our closings versus other agents – again!

Ranked #1 - Selling Sugarloaf Homes for the Highest Values!

Case Study: After interviewing 3 other agents, Susan & Eric Olson selected Mary & Tony Floyd with Floyd Real Estate Group to market and sell their beautiful home at 2885 Darlington Pointe.

“We felt that their exclusive Launch Marketing Program and Value Positioning Strategies provided the best opportunity to achieve the highest market outcome. The other agents thought our market value was around $150,000 lower. The result? Launch marketing created three very busy days of showings and 5 offers that were list price or better! We sold our house for $1,850,000 – exactly what Floyd Real Estate Group estimated for market value. The hardbound Home Books provided to Buyers were very impressive and we loved their Buyer Term Sheets for positioning the price and terms. The Olson's are extremely happy and highly recommend Floyd Real Estate Group!” Erik & Susan Olson

Contact Us To Learn More About Our Exclusive Launch Marketing Program!

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M A RY F L O Y D

TONYFLOYD

Mary Floyd has been a licensed REALTOR® since 2005 and has consistently been one of the top luxury agents in North Atlanta. Mary is a Certified Relocation Specialist, Short Sale/ Foreclosure Specialist, Certified International Property Specialist and has earned many performance awards including Chairman’s Circle, Legend Award, Master’s Club, NAMAR Top Producer, Phoenix Award and Best of Gwinnett. With a passion for service, Mary places the highest value on building trusted relationships and achieving exceptional results for clients.

Tony Floyd served 14 years as Chief Marketing and Innovation Officer for a global real estate brokerage. He is considered one the leading marketing and technology experts in the real estate industry and pioneered numerous innovations that delivered better value for clients. Prior to real estate, Tony led sales and marketing organizations for respected companies including IBM, Fujitsu, Trilogy Software and BellSouth eBusiness. No other real estate agent or team has this level of expertise to assist clients in selling, buying and investing in real estate.

COMPASS CARES As we work to help everyone find their place in the world, COMPASS Cares empowers agents and employees alike to support meaningful causes right where it counts most: at home.

COMPASS Cares contributes funds and skills-based volunteering to local organizations, with 100% of real estate transactions resulting in a donation to the community.

Floyd Real Estate Group is a proud supporter of the Women’s Club of Sugarloaf Country Club Charities including Annandale Village, Duluth Co-Op, Mosaic, The Next Stop Foundation, and Special Needs School of Gwinnett.

We were honored that COMPASS also made a substantial donation to Rainbow Village on our behalf.

Rainbow Village is a wonderful organization here in Duluth that supports homeless single mothers and helps give them a path forward in life. Giving back and being involved in our community is an important aspect of our lives.

2022 Is Going To Be An Exciting Year!

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.

COMPASS Atlanta 3107 Peachtree Road NE, Suite A-1 Atlanta, GA 30305

compass.com

Mary Floyd Luxury Real Estate Specialist Founding Partner m. 404.312.3837 o. 404.668.6621 mary.floyd@compass.com FloydREGroup.com

Tony Floyd Operating Principal Founding Partner m. 404.406.7819 o. 404.668.6621 tony.floyd@compass.com FloydREGroup.com