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I live in a city that uses the Mass Appraisal method. The county appraiser just does not look inside a home. A home with zero amendments inside can be appraised the same as one with marble and glass-n-brass throughout the interior. Regardless how well the homeowner fixed up their home a home with the same dimensions and supposedly same bedrooms etc could be appraised the same using the Mass Appraisal Method
If your house ever sold in the past then the Assessor would have compared its sales price at that time to other comparable properties to see how it compared. If it sold for much higher than similar houses then it would be obvious that your house had nicer improvements.
Furthermore, if the house was listed in the MLS then that data could also be considered by the Assessor.
When your house was first built you would have gotten a building permit and that permit info would have been supplied to the Assessor.
If you updated your house after buying it then that building permit info would have also been supplied to the Assessor.
Mass appraising is a necessity for Assessors simply due to the fact that it would not be financially feasible to develop a typical appraisal on every house. But there are indicators (illustrated above) that gives the Assessor an idea of how your house is improved unless you illegally made significant improvements without getting the proper permits.
If your house ever sold in the past then the Assessor would have compared its sales price at that time to other comparable properties to see how it compared. If it sold for much higher than similar houses then it would be obvious that your house had nicer improvements.
Furthermore, if the house was listed in the MLS then that data could also be considered by the Assessor.
When your house was first built you would have gotten a building permit and that permit info would have been supplied to the Assessor.
If you updated your house after buying it then that building permit info would have also been supplied to the Assessor.
Mass appraising is a necessity for Assessors simply due to the fact that it would not be financially feasible to develop a typical appraisal on every house. But there are indicators (illustrated above) that gives the Assessor an idea of how your house is improved unless you illegally made significant improvements without getting the proper permits.
Thank you and I do understand that. I did have my 3,000 + sf single floor home custom built and everything should have been accurately documented. It is not. I am also on the water and 2 comparison homes used in my appraisal were not on the water .
Then why do banks bother with an appraisal in the first place?
The contract price is one data point. Other sold properties are also relevant (but also not a perfect gauge). By the way, many of those other sold properties were contract prices at some point.
The contract price is one data point. Other sold properties are also relevant (but also not a perfect gauge). By the way, many of those other sold properties were contract prices at some point.
So do you think the same house with two identical contracts except for price will yield a different appraisal?
The contract price is one data point. Other sold properties are also relevant (but also not a perfect gauge). By the way, many of those other sold properties were contract prices at some point.
The trouble with that is, is that one sale does not make the market.
Buyers can pay whatever they want for a property. The banks can loan whatever they want (their money -- their rules) and they want to loan only what the property is worth on the open market.
So do you think the same house with two identical contracts except for price will yield a different appraisal?
If you read my original post, you can see that the same house with the identical contract (including price) yielded 2 different appraisals. $30,000 difference and all that was different was the appraiser...
The contract price is relevant as one data point. USPAP requires appraisers to consider all the terms and conditions of the contract.
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