Market dictating price from buyer's perspective (assessor, tax, assess)
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which one did you get??? you didn't say which number! i'm guessing #1.
ETA: you edited your post after I posted! LOL
Sorry, I hit submit and then re-read it and realized I never said which one we picked. It was #1. It had the most land and the most square footage. The backyard was also fenced, which was a big plus for us. It also had a breakfast room off the kitchen which made the family room and kitchen area much larger. #3 had a fireplace, but whereas number 1 had a full breakfast room, 3 only had a nook. Both had significant upgrades, but #3 was done a little better with all new flooring and completely neutral paint. The final decider was that #1 was located in a quieter section backing to a park area and playground, while #3 was closer to the entrance and the shopping area.
Home #2 interested us, because it was a lot like #3, but had a fenced yard. It also had a bonus room upstairs instead of a cathedral ceiling with skylights in the living room like #1 and #3 had. It would have been harder for us to pick between #1 and #2, but the economics, made the decision for us.
I disagree. What someone paid for their house should have absolutely no bearing on what that house is worth today.
It doesn't, but you need to be aware of what they paid in this market, since there are a lot of homes out there where people bought in 2007 or 2008 and are now trying to sell and they have no equity. They are in the position of either bringing money to the close to cover all the fees or are only capable of accepting a full list offer without concessions so they can cover everything.
You would never pay someone more than a house was worth, just because they needed more than that to close (well I suppose some would, but I wouldn't). The point is that you need to be aware so you don't waste your time negotiating with someone who has no flexibility to bring their price down to where it needs to be. In the example I posted, the owners of home #2 would have had to bring over $13k to closing if we had offered what the home was worth based on comps (accounting for the closing money we wanted) and they would have had zero leverage for repairs and anything else that may have come up during the process. It just wasn't worth it to even pursue that house.
Prices are still based on comps and the market, but you need to be aware of what concessions people can make and you can only find that out by looking at what they owe.
You just don't know until you negotiate. I recently sold my house that I bought in 2005. It was sold for market value. We haggled on price. We haggled on repairs. Normal sale.
And unless you know what the payoff amount is on the loan it is pointless anyway. I could have put down a 50% deposit.
You just don't know until you negotiate. I recently sold my house that I bought in 2005. It was sold for market value. We haggled on price. We haggled on repairs. Normal sale.
And unless you know what the payoff amount is on the loan it is pointless anyway. I could have put down a 50% deposit.
Very true, but when you know someone went FHA in 2007 as was the case with us, the chances of them having put down more than 3.5% were pretty remote.
At the end of the day if that is the right house for you, you're going to enter negotiations anyway. I was merely trying to illustrate that in today's market it is a factor that needs to be considered and restricts the negotiating power of many sellers. We've all heard of the sellers pricing their house well above market, because that is what they need to sell.
Again, price is still determined by market and what the house is worth to the buyer, but the current climate makes the other piece of information necessary before you enter negotiations. Information is king.
LMAO - this is actually a hobby of mine. This works for very few towns, but my town is in the unique position right now where assessed values (for tax) are pretty darn close to "actual value". I get a kick out of people asking $740K for a house assessed at $560K.
Yeah, but that would depend on the ratio in the town. If the ratio is 33%, the house should be priced at 3X the assessment. 50%, it should be 2X. And the longer the municipality has gone between revals, the lower the ratio can be.
Yeah, but that would depend on the ratio in the town. If the ratio is 33%, the house should be priced at 3X the assessment. 50%, it should be 2X. And the longer the municipality has gone between revals, the lower the ratio can be.
I understand this, which is why I said "not many towns can say this". We *just* got revaled a few months ago and it's pretty spot on.
I understand this, which is why I said "not many towns can say this". We *just* got revaled a few months ago and it's pretty spot on.
A reval is a huge headache. I wasn't in the Assessor's Office in Bayonne when they did their last (I was working in the Water Department at the time), but the nightmare spilled over to the rest of the offices in the Finance Department. I'm glad I retired before the next reval was ordered.
How can you determine the sale/purchase history of a property to find out what the previous owner paid for the real estate?
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i'm guessing #1.
