My husband and I found a house we like a lot. O.K. we both love it. Real Estate agents really put the pressure on and probably were successful because we had been looking for 2 days and this house looked like a jewel inside. No wear and tear from renters, great outdoor living space, right on the sound with a protective marsh and lagoon in front, great crabbing, fishing and beautiful sunsets.
We put a full price cash offer in because another couple was looking at it and making an offer too. List price was only $20K below current tax assessment. List price is $629K. Seller accepted our offer. We are now in the Due Diligence period. We can cancel any time during this Due Diligence for no reason. Due Diligence runs out October 15th. Am waiting for the appraisal but since we have been looking in this area off and on the last two summers we have a good idea of where houses were selling. Most were selling for 30% below current tax assessment.
Here's the deal about the current assessment. This area has not gone thru a physical re assessment of property since 2005 so all tax assessments are at the high of the market. This is why most are selling for 30% below.
I called the county assessor's office and spoke with the appraiser doing the appraisals for this area. He told me come Jan1, 2013 if no other property closes, the current owners will be getting a tax assessment notice for $200,000 below the current which in fact is 30% + below the current.
Have also talked to a builder that is building a house for someone 3 lots down. House will actually be 500 square feet less than the one we have the contract on. He told me the price to this owner will be in the low $300K range, not including the lot. This puts this new house including the lot in the $450K range..and right at the new assessment of the house we are looking at.
Have printed out for myself all sales for 2012 and 2011 in this area and in fact can find not one property that sold at current assessment. Most were 30% to 50% below.
First Question:
In a resort area how much weight do you give to tax assessments? I keep hearing,(from the realtors of course) that what people are selling for and buying for has nothing to do with tax assessments. Yet the appraiser I spoke with told me while they do a "mass appraisal", they fine tune it to look specifically for houses with the same or similar characteristics such as "sound front, 2700 square feet, 1/2 acre...etc. ).
I am going to try to renegotiate price based on the appraisal and if I actually agree with the comps used. But the seller is not likely to sell. At which point in time we probably walk away.
Let the seller get the new low $450K assessment value come Jan 1 instead of us. Right
Second question:
Who would you believe? The county appraiser who when I told him what we offered said, "Whew...you are paying too much"! or the real estate agents trying to soft pedal this and convince me that people are buying because they love a place regardless of price. Further stating "Someone will pay full price for it".
I think my husband and I need to cancel this contract before Due Diligence, let 3 months pass, let all those new assessments get into owners hands at 30% down from where they are....and then go look again...unless of course the sellers are willing to go there now.
All comments appreciated!
We put a full price cash offer in because another couple was looking at it and making an offer too. List price was only $20K below current tax assessment. List price is $629K. Seller accepted our offer. We are now in the Due Diligence period. We can cancel any time during this Due Diligence for no reason. Due Diligence runs out October 15th. Am waiting for the appraisal but since we have been looking in this area off and on the last two summers we have a good idea of where houses were selling. Most were selling for 30% below current tax assessment.
Here's the deal about the current assessment. This area has not gone thru a physical re assessment of property since 2005 so all tax assessments are at the high of the market. This is why most are selling for 30% below.
I called the county assessor's office and spoke with the appraiser doing the appraisals for this area. He told me come Jan1, 2013 if no other property closes, the current owners will be getting a tax assessment notice for $200,000 below the current which in fact is 30% + below the current.
Have also talked to a builder that is building a house for someone 3 lots down. House will actually be 500 square feet less than the one we have the contract on. He told me the price to this owner will be in the low $300K range, not including the lot. This puts this new house including the lot in the $450K range..and right at the new assessment of the house we are looking at.
Have printed out for myself all sales for 2012 and 2011 in this area and in fact can find not one property that sold at current assessment. Most were 30% to 50% below.
First Question:
In a resort area how much weight do you give to tax assessments? I keep hearing,(from the realtors of course) that what people are selling for and buying for has nothing to do with tax assessments. Yet the appraiser I spoke with told me while they do a "mass appraisal", they fine tune it to look specifically for houses with the same or similar characteristics such as "sound front, 2700 square feet, 1/2 acre...etc. ).
I am going to try to renegotiate price based on the appraisal and if I actually agree with the comps used. But the seller is not likely to sell. At which point in time we probably walk away.
Let the seller get the new low $450K assessment value come Jan 1 instead of us. Right
Second question:
Who would you believe? The county appraiser who when I told him what we offered said, "Whew...you are paying too much"! or the real estate agents trying to soft pedal this and convince me that people are buying because they love a place regardless of price. Further stating "Someone will pay full price for it".
I think my husband and I need to cancel this contract before Due Diligence, let 3 months pass, let all those new assessments get into owners hands at 30% down from where they are....and then go look again...unless of course the sellers are willing to go there now.
All comments appreciated!
