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What will be interesting is when the new tax assessments come up and how Wake County is going to adjust for their losses like the rest of us.
Wake County will respond the same way they and every other county always has at reassessment time. Tax rates are adjusted so that when applied against new assessment values they are "revenue neutral" (absent a decision to increase revenue which happens from time to time).
Reassessments are not about changing county property tax revenues. They are about re-balancing the tax burden based on market fluctuations.
The results are truly all over the place.
Despite sales prices well below tax value in some areas, many homes are trading above tax value.
Some proactive homeowners appealed their tax assessments to bring them closer in line to market value. In 2008 I did CMAs for folks who questioned their new assesments and found that it was common for Cary tax values to be about 8%-9% over market value. So, that error was built in for them at the start when the market softness hit.
Anyway....
Detached homes, closed on MLS in the last 7 days in Wake County, with those noted as REO, Short Sales, Foreclosures, removed from the total... 166 sales total 37 homes traded at or above tax value... And no real rhyme or reason why and where, although eastern Wake County stands out for just not selling at tax value, probably due to high number of distressed sales and glut of inventory.
Thank you, this is awesome data! Not the news I wanted, but love the data points and appreciate the look!
Your refi appraisal is not a market value appraisal.
It seems like refi appraisals always come in higher than a purchase money appraisal would.
What is your opinion regarding an appraisal for a construction to perm loan for a renovation/addition project? I personally paid for an appraisal to see what the house would be worth after the improvements were done to make sure I was in the ballpark for the loan. The bank then ordered a 3rd party appraisal to do the same. Both appraisals were within $25k and right across the top it states: "The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property."
Are you saying that a refinance appraisal is not the same "Uniform Residential Appraisal Report?"
Just curious about this and if you think the appraisals I had done are legit market value?
Have not finished the project, so won't know the new assessed value for taxes until after completion.
One thing everyone should know about appraisals especially in this day and age.
On a refinance the loan to value is determined from the appraised value. The appraiser does not know what the loan amount or expected value is. They just know it is a refinance and work within guidelines established to develop a report and value.
On a purchase the loan to value is determined by the LESSER of the contract price or the appraised value. You contract at $200k and appraisal comes in at $202k all is good loan to value is determined off of $200k. The appraiser gets a copy of the sales contract and knows what the "target" value is. It does no good for anyone to appraise the home at $215k and have the report quetioned making more work for the appraiser and possibly delaying closing while the questions are being answered.
This is why it appears that refinance values are higher.
Tax value is a snapshot in time of what a property was worth then and an appraisal is today.
What is your opinion regarding an appraisal for a construction to perm loan for a renovation/addition project? I personally paid for an appraisal to see what the house would be worth after the improvements were done to make sure I was in the ballpark for the loan. The bank then ordered a 3rd party appraisal to do the same. Both appraisals were within $25k and right across the top it states: "The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property."
Are you saying that a refinance appraisal is not the same "Uniform Residential Appraisal Report?"
Just curious about this and if you think the appraisals I had done are legit market value?
Have not finished the project, so won't know the new assessed value for taxes until after completion.
I would yield to an appraiser or lender to discuss with more knowledge than I could offer.
What is your opinion regarding an appraisal for a construction to perm loan for a renovation/addition project? I personally paid for an appraisal to see what the house would be worth after the improvements were done to make sure I was in the ballpark for the loan. The bank then ordered a 3rd party appraisal to do the same. Both appraisals were within $25k and right across the top it states: "The purpose of this summary appraisal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property."
Are you saying that a refinance appraisal is not the same "Uniform Residential Appraisal Report?"
Just curious about this and if you think the appraisals I had done are legit market value?
Have not finished the project, so won't know the new assessed value for taxes until after completion.
In about three weeks, you will be able to hire a licensed broker to complete a Broker Price Opinion for you. The law that just recently passed is making them legal in North Carolina as of October 1st. They are much cheaper than an appraisal ($100 or less) and if you hire a knowledgeable person, it is going to be very accurate. In my area, we are having a lot of issues with appraisers, because they are coming from out of town and don't know our market. A "legit market value" and what the state/county thinks the home is worth could be totally different. At least that's how it is in my state.
In about three weeks, you will be able to hire a licensed broker to complete a Broker Price Opinion for you. The law that just recently passed is making them legal in North Carolina as of October 1st. They are much cheaper than an appraisal ($100 or less) and if you hire a knowledgeable person, it is going to be very accurate.
So when these things become available, how should consumers ensure they get a knowledgeable person? Will there be any kind of certification or the like for brokers who are doing these?
Quote:
Originally Posted by Bpobill
In my area, we are having a lot of issues with appraisers, because they are coming from out of town and don't know our market.
I thought this was was a problem (everywhere) introduced by changes to the appraisal process made after the housing bubble burst to prevent some of the abuses in the "easy money" days of real estate lending?
So when these things become available, how should consumers ensure they get a knowledgeable person? Will there be any kind of certification or the like for brokers who are doing these?
I thought this was was a problem (everywhere) introduced by changes to the appraisal process made after the housing bubble burst to prevent some of the abuses in the "easy money" days of real estate lending?
BPOs are lunch money for hard-up agents, and necessary for REO agents.
Equi-Trax emailed me notice of an assignment in Raleigh yesterday, with a $45 payout. And a reduced payout if the first BPO didn't comply 100% with the required detail. Within moments, they emailed again to let me know that the massive response had taken their server down. What the heck??
A busy agent will not do many BPOs for under $100. One can get a market value appraisal for $200--$250 from someone who specializes all day, every day, in property evaluation. Probably worth the investment.
In about three weeks, you will be able to hire a licensed broker to complete a Broker Price Opinion for you. The law that just recently passed is making them legal in North Carolina as of October 1st. They are much cheaper than an appraisal ($100 or less) and if you hire a knowledgeable person, it is going to be very accurate. In my area, we are having a lot of issues with appraisers, because they are coming from out of town and don't know our market. A "legit market value" and what the state/county thinks the home is worth could be totally different. At least that's how it is in my state.
I probably do at least 3 market analysis per month.
If it is a townhome community, with lots of comps, it is fairly easy.
If it is a single family home in a n'hood where many of the homeowners aren't moving, it is a bit more difficult. I then have to go outside the n'hood to find my comps. It is much more difficult to determine similar homes with custom built homes, unless the builder used the same finishes, etc.
There are times when I have suggested to my clients that we have a "true market value" appraisal done. The cost is usually between $300 to $350 but it is well worth it.
My opinion is that an appraiser does this about 3 times per DAY versus my 3 times per MONTH. That appraiser has more expertise than I do.
When you are talking about THOUSANDS of dollars, I'd rather spend the $350 and hire someone who is an expert in the field.
When you are talking about THOUSANDS of dollars, I'd rather spend the $350 and hire someone who is an expert in the field.
Saving $200 in this case makes no sense to me.
Yep, definitely agree with that. I would say, though, that if someone is that serious about knowing the true value of their home, they are probably looking to sell it. Most, if not all, realtors will do a market analysis to determine a good asking price, so I don't see much difference between that and the BPO method.
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