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Old 09-20-2012, 04:16 PM
 
Location: Winter Springs, FL
1,789 posts, read 4,056,514 times
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Quote:
Originally Posted by tkln View Post
Going back to the assessed values for a moment...saw two houses recently, both listed at 200K more than their 2012 assessment. Now I know list price and assessed price are totally different animals, but could an argument be made that the house would seem to be pretty overpriced? I would be concerned that an appraiser would find the value of the house to be closer to what the assessor estimated. I haven't looked into comps or anything yet, not near that stage, but just wondering...
From an real estate appraisal site:
The appraiser will use recently sold prices of similar properties making adjustments for differences between the subject property and the comparables. They will usually combine this "Market Approach" with a second method such as "Cost Approach" (determining the cost to rebuild) and/or "Income Apprcoach" (used on properties that produce income) to determine Value. Appraisals are done most commonly when a property is to be financed or refinanced, but may also be requested for a variety of other reasons. Assessed value and appraised value will usually not be exactly the same on a property as the appraised value takes a snapshot in time and will be impacted by market activity.
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Old 09-20-2012, 05:17 PM
 
Location: The Woods
16,936 posts, read 22,202,288 times
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Assessed value is almost always off some but I can't see it being $200K low.
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Old 09-21-2012, 05:51 AM
 
Location: Western views of Mansfield/Camels Hump!
1,941 posts, read 3,227,464 times
Reputation: 1085
68vette, thank you for that info...I'll have to look into comps to get a clearer picture, but in this market, I would think the appraisal would not support the asking price (or anything near it).

Quote:
Originally Posted by arctichomesteader View Post
Assessed value is almost always off some but I can't see it being $200K low.
Considering the assessments were done this summer, I agree and this is why it's puzzling me. I might contact the town assessor and see if I can get some more information on why the properties were assessed at that rate.
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Old 10-03-2012, 05:55 PM
 
161 posts, read 239,615 times
Reputation: 324
I believe home prices must and will continue to drop. If by some miracle that doesn't happen, the result will be the fueling of another bubble that will burst just like the last one - except with even worse consequences, because the economy hasn't recovered. I don't think that low mortgage interest rates can begin to make up for the fact that houses are still priced way too high.

My husband and I had a recent demonstration of this, and I think any one of you could duplicate our experience with a little bit of online research. Friends of ours had a good job offer (at least, good under present conditions) in Portland (Maine), a city we'd lived in some years ago. Our friends asked us to help them decide whether to try to rent something or put their things in storage for a while and look for a house to buy. We began by looking at houses for sale online (most everything that's for sale IS online) and were astonished at the prices. We'd been in Portland at the beginning of the real estate boom and had rented for our first year there. We'd planned to buy a house after we got to know the area, but within that year the prices of houses commutable to Portland went sky high. There had been a pretty wood-shingled house for sale just down the street from us when we moved into our rental. We lusted after that house. It was nothing special, but it was sweet and tidy and had just sold for $62,000, a price that was comparable to other houses in the neighborhood. By the time our lease was up, one year later, the house was for sale again. It sold for $172,000. So - that's the backstory of my present tale and, of course, we opted out of that market.

Looking at houses in and around Portland, we were astonished to see they were still for sale at prices that were truly insane. I suggest that anyone considering ANY house should use Trulia or Zillow to see the house's price history. This will show as a graph, and it's easy to see what the highest sale price has been over a number of years. I looked at many houses that were twice the price they'd been about a decade ago, some nearly three times the price. Those prices, seen without their proper context, are meaningless - so I'll supply the context. How many people reading this are making twice the amount of money they were making about ten years ago? How many expect to get a huge pay increase (or ANY pay increase) in the immediate future? How many are absolutely certain their job is layoff-proof? Given that state of affairs, which is not going to change no matter who is in the White House, what sane person would buy one of these houses?
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Old 10-03-2012, 06:12 PM
 
1,135 posts, read 2,044,734 times
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Quote:
Originally Posted by angelo129 View Post
I believe home prices must and will continue to drop. If by some miracle that doesn't happen, the result will be the fueling of another bubble that will burst just like the last one - except with even worse consequences, because the economy hasn't recovered. I don't think that low mortgage interest rates can begin to make up for the fact that houses are still priced way too high.

My husband and I had a recent demonstration of this, and I think any one of you could duplicate our experience with a little bit of online research. Friends of ours had a good job offer (at least, good under present conditions) in Portland (Maine), a city we'd lived in some years ago. Our friends asked us to help them decide whether to try to rent something or put their things in storage for a while and look for a house to buy. We began by looking at houses for sale online (most everything that's for sale IS online) and were astonished at the prices. We'd been in Portland at the beginning of the real estate boom and had rented for our first year there. We'd planned to buy a house after we got to know the area, but within that year the prices of houses commutable to Portland went sky high. There had been a pretty wood-shingled house for sale just down the street from us when we moved into our rental. We lusted after that house. It was nothing special, but it was sweet and tidy and had just sold for $62,000, a price that was comparable to other houses in the neighborhood. By the time our lease was up, one year later, the house was for sale again. It sold for $172,000. So - that's the backstory of my present tale and, of course, we opted out of that market.

Looking at houses in and around Portland, we were astonished to see they were still for sale at prices that were truly insane. I suggest that anyone considering ANY house should use Trulia or Zillow to see the house's price history. This will show as a graph, and it's easy to see what the highest sale price has been over a number of years. I looked at many houses that were twice the price they'd been about a decade ago, some nearly three times the price. Those prices, seen without their proper context, are meaningless - so I'll supply the context. How many people reading this are making twice the amount of money they were making about ten years ago? How many expect to get a huge pay increase (or ANY pay increase) in the immediate future? How many are absolutely certain their job is layoff-proof? Given that state of affairs, which is not going to change no matter who is in the White House, what sane person would buy one of these houses?
You have to look no further than Stowe to see that this is true in areas of Vermont. Homes are only affordable to people moving there from somewhere else. I work there but could never afford anything other than a condo (which have really depreciated in the past 5 years).

Even in our town where you could buy a home in the village for $120,000 10 years ago, those homes are going for close to $200,000 today. Meanwhile wages have been flat. They just sit on the market for years in many cases.

At least it's better than where we used to live (northern N.J.) The bungalow be bought for $150,000 when we were married in the mid 1990s was recently listed for $346,000.
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Old 10-04-2012, 06:20 AM
 
Location: Western views of Mansfield/Camels Hump!
1,941 posts, read 3,227,464 times
Reputation: 1085
We moved up here from NYC a month ago. Currently staying in our small condo in Stowe while house hunting. We're a multi-generational living situation, and due to my mom's wishes, she wants to be near Stowe where several family members live part time.

I have seen about 14 houses in the last month. I can tell you that most of the prices here are way out of reach for us, even though we are coming from out of state (granted, we are working middle class, not high end Manhattan income). I've seen several houses that are out of our price range, and the listing agents always say the owners are motivated to sell. If they are motivated, why on earth wouldn't they drop the price? We're not talking 25-50K overpriced, we're talking 100K+ overpriced. I can understand if they aren't in a rush to sell but it makes no sense if they are motivated to keep holding on at those prices.
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Old 10-04-2012, 06:23 AM
 
Location: New Jersey
11 posts, read 26,214 times
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Quote:
Originally Posted by LisaMc46 View Post

At least it's better than where we used to live (northern N.J.) The bungalow be bought for $150,000 when we were married in the mid 1990s was recently listed for $346,000.
Oh, I believe it. I live in South Jersey and the prices are absolutely disgusting.
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Old 10-04-2012, 07:30 AM
 
Location: Winter Springs, FL
1,789 posts, read 4,056,514 times
Reputation: 925
Quote:
Originally Posted by Aurora369 View Post
Oh, I believe it. I live in South Jersey and the prices are absolutely disgusting.
Quote:
Originally Posted by LisaMc46 View Post
At least it's better than where we used to live (northern N.J.) The bungalow be bought for $150,000 when we were married in the mid 1990s was recently listed for $346,000.
Prices in the Northeast are sickening, but when you look at prices and compare, you really need to take incomes into consideration. New Jersey has almost 9 million people with a median income of about $70,000/yr. Vermont has just over 600,000 people with a median income of just over 50,000. Vermont has a unique issue with income. There are people in every state that need to work multiple jobs, but in Vermont, nearly 50% of the population needs to work a second job or collect public assistance. You can't buy a 150,000-200,000 dollar home making $12/hr or less.
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Old 10-04-2012, 09:42 PM
 
Location: IN
20,786 posts, read 35,823,153 times
Reputation: 13210
NH housing market is way out of touch with reality as well, particularly in the RRR (resort/retiree/recreation) markets. Houses have sat on the market for years at inflated prices with very few takers. Now, prices have fallen back somewhat but are still well overpriced, particularly when considering that the assessment values are often quite high as well. NH property tax dependency makes the housing situation worse in areas that have higher levels of local spending. Assessements go up even higher, often to account for specific levels of spending.
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Old 10-05-2012, 06:24 AM
 
Location: in a cabin overlooking the mountains
3,079 posts, read 3,708,782 times
Reputation: 2253
Quote:
Originally Posted by tkln View Post
We moved up here from NYC a month ago. Currently staying in our small condo in Stowe while house hunting. We're a multi-generational living situation, and due to my mom's wishes, she wants to be near Stowe where several family members live part time.

I have seen about 14 houses in the last month. I can tell you that most of the prices here are way out of reach for us, even though we are coming from out of state (granted, we are working middle class, not high end Manhattan income). I've seen several houses that are out of our price range, and the listing agents always say the owners are motivated to sell. If they are motivated, why on earth wouldn't they drop the price? We're not talking 25-50K overpriced, we're talking 100K+ overpriced. I can understand if they aren't in a rush to sell but it makes no sense if they are motivated to keep holding on at those prices.
I bet if you widen your search a few miles outside Stowe you will find something affordable.
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