Flint City's real estate value could drastically decline due to water problems, recent report say.
Last January, one resident requested for a poverty tax exemption from the Michigan Tax Tribunal, considering lead-poisoned water as the reason for such appeal.
These water woes have apparently affected Flint's property values as according to Detroit Free Press, properties of lower values will pose a huge difficulty in selling tax-foreclosed properties. In the same way, residents may also find it difficult to sell, buy or refinance properties with unsanitary water supply.
Many would surely agree that water supply will always be considered in property pricing, or tax charging, for that matter.
"Who wouldn't discount value from a home in Flint based on water?" Farmington Hills Lawyer Dan Penning, who specializes in property tax appeals, said via Detroit Free Press. He also observed that property values have been dropping as much as 25 percent.
To address this concern abruptly, lenders and appraisers had a sit-down on this matter. Eric Dean Morse, president of Flint-based Allied Real Estate Appraisers, said that homeowners should have their water tested first and see if it meets the standards of Environmental Protection Agency.
Last year, Dwayne Walling, Flint City mayor, advised the use of approved taps and filters. They should be approved by the county itself. They should also be flushed by cold water within five minutes before drinking it.
On the other hand, reports tell that this renewed pre-water test law cannot guarantee the property's high value.
"We're going to be writing our appraisals with a disclosure. This appraisal is written under the hypothetical that the home has potable water treated to EPA standards," Morse shared.
Morse also expressed the need for the city homes to be appraised based on industry standards as if standard appraisal is not done, it will affect the overall reputation of Flint's real estate.
"It's going to put a stigma on Flint that will in a way make things far worse. This is a stigma that could last 20 years," Morse said.
Recent reports about Flint's polluted water show how destructive it has been for the people in the area. For one, Faktual reports on a father who had his child checked whether he has lead in his blood. The source reveals that after their meetings last week, Flint's agencies and realtors have come up with a realization that environmental issues can really affect the value of a certain property.
"Anytime you have sort of a mass impact of an environmental factor on property, it's going to impact the overall value of each particular parcel," Penning added.
