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Old 03-21-2018, 11:22 AM
 
17,232 posts, read 14,821,251 times
Reputation: 32784

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Hello, my fiancé and I purchased a foreclosure that will be our home. Closing was in January. We haven't moved in yet because the home needs work to get a C.O.


We paid $100,00 for the home, which was listed for $96,000 (we had already lost a bid for another home and were in love with this one so offered HUD above asking price even though no one else was making an offer that we knew of) The home currently has a small hole in the foundation and a bathroom with no drywall and old fixtures which we have already ripped out. The roof is doable for now but will need to replaced soon. The rest of the home is in good shape. HUD made us take a 203K loan to make sure we can make the needed repairs They gave us $20,000 for repairs.


I just got a tax assessment in the mail that has it assessed at $172,000. It says land $58,000, building $114,000.


My question is, is it normal for a home to be assessed at that much more than it was valued at by the appraiser, and that high above the sales price? This is a pretty high tax township so I don't want to pay more starting out than we are supposed to. I am concerned when it goes up even more in value when we fix it up (my fiancé and his buddies are all in various contracting trades and it's going to be awesome when it's done) that if it's already appraised higher than it should be than it will really skyrocket then.


This is my first home and I don't want to go in and ask for a reappraisal without knowing whether it's appropriate. Is it normal for the assessment to be so high in relationship to the mortgage company and HUD appraisals, especially considering the current condition of the "building".


Thanks!
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Old 03-21-2018, 12:33 PM
 
Location: The Triad (NC)
26,850 posts, read 57,874,473 times
Reputation: 29261
Quote:
Originally Posted by ocnjgirl View Post

Relationship between tax assessment and home cost/value (appraisal)?
Nope. They run in the same circles but aren't related.

Quote:
Hello, my fiancé and I purchased a foreclosure...
We paid $100,00 for the home, which was listed for $96,000
I just got a tax assessment in the mail that has it assessed at $172,000.
Instant equity. Sounds like you've done well.
Still, it wouldn't hurt to ask THEM how they came up with their numbers.

Quote:
My question is, is it normal ...
In this instance... it likely reflects the distressed sale circumstances.
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Old 03-21-2018, 01:00 PM
 
1,326 posts, read 528,365 times
Reputation: 2308
Ask for a reappraisal. Unlike the assessment done when you bought, the appraisal is done without actually coming into your house.
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Old 03-21-2018, 01:02 PM
 
Location: El paso,tx
1,492 posts, read 574,260 times
Reputation: 2315
Most states have ways to dispute appraised value. You need to bring your closing documents and appraisal that was done if you financed it. Normally they will lower the taxable value appraisal.
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Old 03-21-2018, 01:14 PM
 
4,293 posts, read 6,398,941 times
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And just so it's not missed, you should be able to have that taxed value set to your purchase price. Georgia makes it easy, one form and supporting reason/documents (sales contract is enough here) and submit. You can do it outside the sale too, but at purchase time you have the strongest evidence.

My own home, a foreclosure as well, was bought for 3 times less than where the county had it appraised, and taxed. Prior home wasn't Quite so bad, but I still managed to get ~$60k knocked off the county appraised value.
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Old 03-21-2018, 01:18 PM
 
Location: Saint John, IN
10,638 posts, read 3,316,997 times
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Since it was a foreclosure you paid BELOW market value for the home. The assessment is based somewhat on market value. It's probably right but you can contact your assessor's office and have them look into lowering it.
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Old 03-21-2018, 01:46 PM
 
Location: Austin
7,077 posts, read 16,893,484 times
Reputation: 9484
If you don't even have a CO, you should be able to contact them and tell them the house isn't livable because there is no CO, and look, I just paid this amount in order to update it so I can get a CO. Walk in their office, it's easier to do that in person.
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Old 03-21-2018, 03:01 PM
 
Location: North Beach, MD on the Chesapeake
32,111 posts, read 39,184,670 times
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My oldest son was in the same situation a few years ago, bought low and the new tax assessment was way higher than purchase. He appealed immediately and it was dropped down to the purchase price plus the 203K repairs.

Just for reference, he paid $108K plus $17K in 203K repairs for a new assessment of $125K. The previous owner had defaulted on a $298K loan for it. Of course that was during the crazy times of 2006.
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Old 03-21-2018, 03:05 PM
 
17,232 posts, read 14,821,251 times
Reputation: 32784
Thanks everyone! If I question is, does that ever backfire and have your taxes raised, or do they punish you in some fashion for asking about it? We were warned not to ask the township too often about the status of our permits, or they'll put you at the bottom again! We closed in mid-January and are still waiting to get the house energized so we can start work.
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Old 03-21-2018, 03:29 PM
 
Location: Somewhere in America
12,305 posts, read 10,052,184 times
Reputation: 20460
Quote:
Originally Posted by ocnjgirl View Post
Hello, my fiancé and I purchased a foreclosure that will be our home. Closing was in January. We haven't moved in yet because the home needs work to get a C.O.


We paid $100,00 for the home, which was listed for $96,000 (we had already lost a bid for another home and were in love with this one so offered HUD above asking price even though no one else was making an offer that we knew of) The home currently has a small hole in the foundation and a bathroom with no drywall and old fixtures which we have already ripped out. The roof is doable for now but will need to replaced soon. The rest of the home is in good shape. HUD made us take a 203K loan to make sure we can make the needed repairs They gave us $20,000 for repairs.


I just got a tax assessment in the mail that has it assessed at $172,000. It says land $58,000, building $114,000.


My question is, is it normal for a home to be assessed at that much more than it was valued at by the appraiser, and that high above the sales price? This is a pretty high tax township so I don't want to pay more starting out than we are supposed to. I am concerned when it goes up even more in value when we fix it up (my fiancé and his buddies are all in various contracting trades and it's going to be awesome when it's done) that if it's already appraised higher than it should be than it will really skyrocket then.


This is my first home and I don't want to go in and ask for a reappraisal without knowing whether it's appropriate. Is it normal for the assessment to be so high in relationship to the mortgage company and HUD appraisals, especially considering the current condition of the "building".


Thanks!
Depending on your state, yup it's perfectly normal. In many areas, the assessment has absolutely nothing to do with the true value of the home. It's just the town/city/county's way of spreading out the amount of money they want to collect.
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