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Old 05-29-2014, 08:49 AM
 
470 posts, read 854,242 times
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A buyer should consider all of these "hidden" costs when purchasing a home. I see too many people buying homes at the top end of what they can afford to keep up with the Jones' and then freak out when they find out what their property taxes are and/or electricity bill (costs a lot to cool 4000sq ft houses with 12 ft ceilings) etc.
I hope that you can afford that extra property tax owed . You're house is worth that, you just paid that for it afterall. On the plus side, your property value is rising.
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Old 05-29-2014, 12:34 PM
 
12,202 posts, read 23,122,613 times
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Quote:
Originally Posted by MovingCouple View Post
Correct me if I'm I wrong - this MLS reporting adjustment occurred within the last year. So this drastic change in property tax appraisal value would not have occurred 2-3 years ago?
Well, 2-3 years ago the prices weren't skyrocketing like they are today so that's a moot point.
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Old 05-29-2014, 01:19 PM
 
55 posts, read 224,259 times
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Quote:
Originally Posted by globe9 View Post
A buyer should consider all of these "hidden" costs when purchasing a home. I see too many people buying homes at the top end of what they can afford to keep up with the Jones' and then freak out when they find out what their property taxes are and/or electricity bill (costs a lot to cool 4000sq ft houses with 12 ft ceilings) etc.
I hope that you can afford that extra property tax owed . You're house is worth that, you just paid that for it afterall. On the plus side, your property value is rising.
I asked my agent about this possibility but she told me not to worry because the county would not know what the sales price would be. I paid them to provide expertise. Well, so much for that. And yes I can afford it. I could have bought the home fully with cash. But I'm just annoyed by having to finding this out on the day of closing. The agent insisted that the escrow officer was incorrect.

Last edited by Acntx; 05-29-2014 at 07:54 PM.. Reason: removed company name
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Old 05-29-2014, 01:38 PM
 
55 posts, read 224,259 times
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Quote:
Originally Posted by TurtleCreek80 View Post
Well, 2-3 years ago the prices weren't skyrocketing like they are today so that's a moot point.
It's not a moot point because there would have still been a price disparity between the tax appraisal and sales price 2 years ago on this property. The property was probably worth around $300k back then and the tax appraisal around 240k - 250k. My question is: would the tax appraisal have gone up to the sales price 2 years ago? Bear in mind that The MLS was not reporting sales price back then. And my loan was much lower than the sales price.
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Old 05-29-2014, 01:42 PM
 
12,202 posts, read 23,122,613 times
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Quote:
Originally Posted by MovingCouple View Post
It's not a moot point because there would have still been a price disparity between the tax appraisal and sales price 2 years ago on this property. The property was probably worth around $300k back then and the tax appraisal around 240k - 250k. My question is: would the tax appraisal have gone up to the sales price 2 years ago? Bear in mind that The MLS was not reporting sales price back then. And my loan was much lower than the sales price.
It just depends on who the appraisal office had working for them at the time - if it was someone with MLS access and your sale ran through MLS, then yes- the appraisal price would have reset to the purchase price (or close to it). When I bought my condo in 2007, the tax appraisal was equal to my purchase price the following year. So not exactly a new problem....

And you bought yesterday, not 2-3 years ago, so even if the outcome would have been different there is not a darn thing you can do about it and it won't change where you stand today. So, moot point.
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Old 05-29-2014, 01:48 PM
 
2,303 posts, read 1,152,372 times
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The appraised value is supposed to be equal to the market value as of Jan. 1. So unless you think you overpaid, I don't see how you can argue this.

And yes, in my experience the appraisal district has all the information and their appraisal would closely match the recent sales price.
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Old 05-29-2014, 02:27 PM
 
55 posts, read 224,259 times
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Quote:
Originally Posted by TurtleCreek80 View Post
It just depends on who the appraisal office had working for them at the time - if it was someone with MLS access and your sale ran through MLS, then yes- the appraisal price would have reset to the purchase price (or close to it). When I bought my condo in 2007, the tax appraisal was equal to my purchase price the following year. So not exactly a new problem....

And you bought yesterday, not 2-3 years ago, so even if the outcome would have been different there is not a darn thing you can do about it and it won't change where you stand today. So, moot point.
Lol good point. I'm at the final stage of grieving. Ok thanks everyone! Is there a way to close this thread?
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Old 05-29-2014, 05:27 PM
 
Location: North Texas
24,576 posts, read 34,255,658 times
Reputation: 28402
Quote:
Originally Posted by globe9 View Post
A buyer should consider all of these "hidden" costs when purchasing a home. I see too many people buying homes at the top end of what they can afford to keep up with the Jones' and then freak out when they find out what their property taxes are and/or electricity bill (costs a lot to cool 4000sq ft houses with 12 ft ceilings) etc.
I hope that you can afford that extra property tax owed . You're house is worth that, you just paid that for it afterall. On the plus side, your property value is rising.
THIS. This is why I didn't mortgage myself to the max when I bought my house because you never know what the future might hold. I could've mortgaged over $300k with 20% down. I put 10% down and bought a house at $190k. Nice comfy cushion.
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Old 05-29-2014, 07:51 PM
Status: "The 2nd most Interesting Man" (set 3 days ago)
 
Location: DFW - Coppell / Las Colinas
35,351 posts, read 38,795,604 times
Reputation: 42320
Quote:
Originally Posted by MovingCouple View Post
Bear in mind that The MLS was not reporting sales price back then. And my loan was much lower than the sales price.
Appraisers have always had access to the MLS. You're getting bad information.
My appraisal went down about 20% from 2009-2011. It's gone up about 20% since.

BTW, your neighbor will be PO'd at you for causing his house value to go up in 2015.
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Old 05-29-2014, 08:13 PM
 
55 posts, read 224,259 times
Reputation: 33
Quote:
Originally Posted by Rakin View Post
Appraisers have always had access to the MLS. You're getting bad information.
My appraisal went down about 20% from 2009-2011. It's gone up about 20% since.

BTW, your neighbor will be PO'd at you for causing his house value to go up in 2015.
Lol yeah I was worried about that. But the flip side is that he can sell at a higher price. I made sure to have concessions taken off the sales price. Another buyer before me offered the same amount on the house as I did. H opted out because of commute time issues. So guess what - I paid market rate. Actually the neighbor should be PO'd at the lending industry for letting buyers leverage themselves and drive up prices and cause bubbles. He should be pissed off at anyone who puts less than 20% down(I put 40% down so I got skin in the game and will have incentive to hold on and take care of my property.
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