Collin County No Longer Non-disclosure? (Real estate) (2014, how much)

[globe9]

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.

[TurtleCreek80]

Originally Posted by MovingCouple

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.

[MovingCouple]

Originally Posted by globe9

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.

[MovingCouple]

Originally Posted by TurtleCreek80

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.

[TurtleCreek80]

Originally Posted by MovingCouple

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.

[serger]

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.

[MovingCouple]

Originally Posted by TurtleCreek80

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?

[BigDGeek]

Originally Posted by globe9

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.

[Rakin]

Originally Posted by MovingCouple

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.

[MovingCouple]

Originally Posted by Rakin

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.