House Value (by Doogie [KS]) Apr 14, 2019 7:50 AM|
House Value (by myob [GA]) Apr 14, 2019 8:04 AM
House Value (by plenty [MO]) Apr 14, 2019 8:14 AM
House Value (by Doogie [KS]) Apr 14, 2019 8:24 AM
House Value (by don [PA]) Apr 14, 2019 9:02 AM
House Value (by plenty [MO]) Apr 14, 2019 9:18 AM
House Value (by Robert J [CA]) Apr 14, 2019 10:20 AM
House Value (by razorback_tim [AR]) Apr 14, 2019 10:51 AM
House Value (by Landlord ofthe Flies [TX]) Apr 14, 2019 11:26 AM
House Value (by Deanna [TX]) Apr 14, 2019 11:39 AM
House Value (by Doogie [KS]) Apr 15, 2019 6:30 AM
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House Value (by Doogie [KS]) Posted on: Apr 14, 2019 7:50 AM
So I just bought another house. My RE agent priced it based on comps in the area (this wasn't an arm's length transaction) and I agreed with the assessment. The seller did as well, so the offer was made and accepted. The purchase price was $10k less than county tax value. I had planned on appealing tax value once I actually owned the place and providing comps to back me up. The bank of course required an appraisal and I got that back. The appraisal came back $30k higher than purchase price. I had hoped to use the appraisal as well in the appeal. Obviously that won't happen now and the whole appeal plan is probably shot now.
I guess it's a good problem to have. I have quite a bit of instant equity (on paper). I honestly do not think I can convert this paper equity to cash by reselling though. I firmly believe it will just sit there on the market forever. Guess my only option now is to collect the rent and pay the higher tax bill every year.
House Value (by myob [GA]) Posted on: Apr 14, 2019 8:04 AM
We have been faced many times with higher appraisals then what tax value is.
ALWAYS appeal. You won't be submitting YOUR appraisal so keep it to yourself and find those 3 or 4 that have lesser value.
Here in GA we are allowed to use foreclosed properties as part of the values. That made it relatively easy to find low value comps. We USED EVERYONE we could.
One trick we learned from the assessors and the 3 person tax board-- they were using properties up to 3 miles away from the target property. We used values on the same street. When we wouldn't settle we asked for a Superior court judge to look and a jury trial. Funny how when we tried to appeal these individually the assessor said no we had to do groups by the assessor who's area it was. When we appealed to superior court we appealed one property at a time-- when the district atty saw this he went ballistic. "Do you know how much this will cost to have a jury trial on each property-- individually"? Told him that wasn't my problem-- DA told assessor to settle these. THEY did. --99.103.xxx.xxx
House Value (by plenty [MO]) Posted on: Apr 14, 2019 8:14 AM
Use condition. Pick of missing kitchen? Water in basement. They will show you comparables of pretty houses, well maintained. That is not apples to apples --99.203.xx.xxx
House Value (by Doogie [KS]) Posted on: Apr 14, 2019 8:24 AM
Agree plenty. I think the appraiser picked owner occupied homes. Well taken care of, manicured lawns, etc. The agent was comparing investment properties. Although they are nice homes, they may or may not be as well cared for as the owner occupied houses.
myob - that's one way to do it! Make them realize it's going to cost more to defend it than the tax value will bring! Haha! --72.209.xxx.xxx
House Value (by don [PA]) Posted on: Apr 14, 2019 9:02 AM
Is n't that what Trump supposedly did wrong, valuing his properties high when seeking loans but low when appealing taxes?? Ha ha. I laugh because that is the most normal practice for anyone who ever owned real estate.
Also, the appraisal came in high? I have never seen an appraisal come in higher than the purchase price.
Finally, in Philly on tax appeals the city attorney will check the recorded docs for any recent mortgages and if the mortgaged amount is higher than your proposed property assessment he will call you on it. In your case, the mortgaged amount may be less than your proposed value, but an astute city attorney will know that you did not get 100% financing on an investment property and may question you as to what the appraised value was on the loan. --73.141.xxx.xx
House Value (by plenty [MO]) Posted on: Apr 14, 2019 9:18 AM
Don. I bought a house for $182k my offer wwas a tab bit over asking price. Bank ask for appraisal. In current condition it appraised for $275k... bank said we wont close the loan to buy... what? Lots of equity, the problem was the difference between asking price and appraised value was to great. Still i fail to understand their process, seems like this should be a good thing! We finally did get the loan closed. But good grief. --99.203.xx.xxx
House Value (by Robert J [CA]) Posted on: Apr 14, 2019 10:20 AM
I've had all sorts of issues with Bank appraisals, Private appraisals and the County Tax Assessor appraisals. They seem to always work against me. So it's always going to be a fight.
My best win was when the City was given an apartment building from an "estate" and valued it at $200,000 while they assessed my sister building at $450,000 for tax purposes. I had purchased my building from a "lender" sale and paid $189,000. You can see the wide gap. So at the Assessment Hearing they wanted me to show at least three comps, I handed them their own "Court Approved Document" -- they couldn't have it both ways... --47.156.xx.xx
House Value (by razorback_tim [AR]) Posted on: Apr 14, 2019 10:51 AM
If this was truly an arms length transaction try using the settlement statement and the comps that your agent used in arriving at the price. --70.178.x.xx
House Value (by Landlord ofthe Flies [TX]) Posted on: Apr 14, 2019 11:26 AM
Appraisals are just estimates of value. Real value of the house is what you paid for it. Don't worry about your appraisals. Take your closing statement. That's the value of the house no matter what anything else says. Your transaction will be the only document that isn't a best guess estimate of value.
This is the only time in your life you'll have proof of value, the sales price. All other challenges will only be based on estimates.
I wouldn't expect much lower than your purchase price though. --108.69.xxx.xxx
House Value (by Deanna [TX]) Posted on: Apr 14, 2019 11:39 AM
We've challenged our taxes, usually using the argument, "We paid $x for this house last year. That's the definition of market value. But you're valuation has it at $y. We're challenging your numbers."
Most recently, our houses have generally been tax foreclosures, so the price is determined by whoever shows up to bid. Occasionally, we'll use the argument on a house that's sold on the open market.
The appraiser will then present their own comps--- from a city, like, 30 miles away, with a totally different economy and a totally different population.
Sometimes the argument works. Sometimes it doesn't. It depends on who's sitting on the appraisal board that year. But even if the house isn't then valued at $x based on the market price, at least they'll adjust the appraised value down to something between $x and $y, and everyone will accept whatever compromise we can get. --96.46.xxx.xx
House Value (by Doogie [KS]) Posted on: Apr 15, 2019 6:30 AM
I would be fine if they used market value. The problem I have is this was not an arm's length transaction. I purchased it from a family member. The county will most likely NOT take sales price in this situation. I do not believe it is worth current tax value and neither did my family member. That's why they agreed to the lower sales price (I had been telling them to appeal the value for years). Now that the appraisal came in even higher, it will worthless to plan on using that.
As a side note, I have had plenty of transactions where the bank appraisal came in higher than the purchase price. It's less common since the mess in 2008, but I've still had it happen. I used to be able to use that paper equity to purchase another house, but no longer.
don PA - I do 100% financing on my houses. It can be a double edged sword, but it has worked so far. I have enough equity now that it's less risky for me. It did make me a bit nervous when starting out though! --72.209.xxx.xxx
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