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Old 09-11-2019, 11:06 PM
 
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My question is if a home is assessed at 100k, and I buy it for 50k, and appeal my assessment as soon as legally possible..would I simply be able to use my purchase of it, and say..five months on the MLS, listed at 70k, no takers, and I purchased it for 50k..therefore, the house is my worth 50k... Commonly, the counties say bring comps, but they don't say a word about a recent sale of the property in question. And, how much will they be able to disregard a foreclosure sale..and I would say buying REO would be considered an arms length transaction, but buying at a courthouse auction might not be. I could see where comps in rural areas could be tough, especially, when you hear things like 6 months is an eternity. Does it defy the principals of appraisals to maintain a higher assessment (which is a form of an appraisal) even after a kind of low ball sale, but off the mls. Willing to pay my fair share. Any thoughts on this? I am 0-1 on tax appeals...but it was land that I had acquired through a tax sale, and I was able to sell it at the assessment value.
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Old 09-12-2019, 04:02 AM
 
Location: The Triad (NC)
29,064 posts, read 63,236,906 times
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Quote:
Originally Posted by Hal Roach View Post
...if a home is assessed at 100k, and I buy it for 50k...
The onus will be entirely on you to demonstrate a market based reason for the difference
vs some less than arms length arrangement with other considerations in the deal.

Tax appraisals are recalculated rather often (3-8 years).
Tax appraisal amount (regardless of mil rate) is almost universally set BELOW market value.
How did this property get appraised mistakenly by no less than 100%? Perhaps even 150%?
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Old 09-12-2019, 05:47 AM
 
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Quote:
Originally Posted by MrRational View Post
The onus will be entirely on you to demonstrate a market based reason for the difference
vs some less than arms length arrangement with other considerations in the deal.

Tax appraisals are recalculated rather often (3-8 years).
Tax appraisal amount (regardless of mil rate) is almost universally set BELOW market value.
How did this property get appraised mistakenly by no less than 100%? Perhaps even 150%?
Well this house is owned by a non profit.. so I doubt they are paying any taxes on it.. So it matters nothing to them if the assessment is crazy. One thing I wasn't sure about.. Do non profits get exemptions even if the property is vacant and has nothing to do with the mission of their non profit?
There was another one just sold.. Assessed at 100k, price finally dropped to 39k, after about two years of bank ownership.. Has mold and foundation issues... but, someone in default is unlikely to be able to appeal, and the bank may let the tax bill go until the sale.. and from what I have seen, the banks are horrible property managers, and lack the wherewithal to fill out the form and mail it in.. I suppose there is a little incentive to keep the assessments high on untaxed and unpaid properties.. Kind of a money grab at closing.
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Old 09-12-2019, 05:57 AM
 
Location: The Triad (NC)
29,064 posts, read 63,236,906 times
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Quote:
Originally Posted by Hal Roach View Post
Well this house is owned by a non profit.. so...
immaterial


Quote:
...after about two years of bank ownership.
also immaterial
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Old 09-12-2019, 06:22 AM
 
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It might be based on local policies but I believe around here an 'Arms Length' sale resets the tax basis since that represents the 'fair market value' of the property. The key is arms length. It has to be a buyer that has no relationship to the seller that could affect the price. That should represent the price the property will bring on the open market.
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Old 09-12-2019, 06:40 AM
 
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Foreclosures would be disregarded and not considered market. Now if the house is in major disrepair because of the condition, which is often the case with foreclosures, that's another matter. As the previous poster said, tax assessment methodology is local. But REO's and foreclosures are not 'market'.
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Old 09-12-2019, 06:59 AM
 
2,243 posts, read 1,308,040 times
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Quote:
Originally Posted by Grlzrl View Post
Foreclosures would be disregarded and not considered market. Now if the house is in major disrepair because of the condition, which is often the case with foreclosures, that's another matter. As the previous poster said, tax assessment methodology is local. But REO's and foreclosures are not 'market'.
But, as stated, there is a huge difference in buying from the bank, off the mls, and being the winning bidder on the courthouse steps. How could an MLS purchase not be considered market? Also, it may be immaterial that it is owned by a nonprofit, but that gives the assessor's office the ability to put a high value on it without any objection. When I bought my condo in Phoenix for 22k that had sold two years before for 119k, the assessment most definitely reflected that purchase price, but there were others with similar discounts..all REO.
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Old 09-12-2019, 08:12 AM
 
Location: The Triad (NC)
29,064 posts, read 63,236,906 times
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Quote:
Originally Posted by Hal Roach View Post
But...
But if you put it up for sale ...what would you expect to get?
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Old 09-12-2019, 08:52 AM
 
Location: Raleigh NC
9,924 posts, read 7,484,933 times
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Quote:
Originally Posted by Hal Roach View Post
My question is if a home is assessed at 100k, and I buy it for 50k, and appeal my assessment as soon as legally possible..would I simply be able to use my purchase of it, and say..five months on the MLS, listed at 70k, no takers, and I purchased it for 50k..therefore, the house is my worth 50k... Commonly, the counties say bring comps, but they don't say a word about a recent sale of the property in question. And, how much will they be able to disregard a foreclosure sale..and I would say buying REO would be considered an arms length transaction, but buying at a courthouse auction might not be. I could see where comps in rural areas could be tough, especially, when you hear things like 6 months is an eternity. Does it defy the principals of appraisals to maintain a higher assessment (which is a form of an appraisal) even after a kind of low ball sale, but off the mls. Willing to pay my fair share. Any thoughts on this? I am 0-1 on tax appeals...but it was land that I had acquired through a tax sale, and I was able to sell it at the assessment value.
it all depends on the rules/practices of the municipality in question. There is no national standard or set of rules.
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Old 09-12-2019, 09:06 AM
 
2,243 posts, read 1,308,040 times
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Quote:
Originally Posted by BoBromhal View Post
it all depends on the rules/practices of the municipality in question. There is no national standard or set of rules.
Except, nearly every assessor office is staffed with certified appraisers.
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