Are home prices still falling hard? (Sugar Land, Spring: foreclosures, to rent, homes)

[elnina]

Josh: there is a difference between appraisal and market value.

Having an appraisal of your home, typically refers to the process of having a bank determine the value of your home based on the structure, land, and other factors. This helps the bank determine if they are willing to loan you the amount of money you have offered to pay for the house. Appraisals look at a home from a stand point of “if this house didn’t exist, what would it cost to make an exact replica of it in every way” (even down to the normal wear and tear of the home). That is also the basis for determining your taxes.

Fair market value looks at the local area of the home and takes similar homes and compares them against each other. Looking at sold, pending, and active listings is the basis of how your Realtor will determine this value. By looking at the local sales data and combining it with local knowledge ( housing market trends, traffic, etc.) and doing a comparative market analysis (CMA for short), your Realtor will help you determine fair market value of your home.
Market value is how much your home is worth to potential buyer. It can be more or less of this appraised figure.

[cheryjohns]

Originally Posted by josh u

But why are the county appraisal values so far off? Your goal is to minimize taxes but their goal is to maximize taxes. I can't imagine they'd just give you a lowball appraisal just for your benefit! You are basically suggesting that county appraisals are bogus.

Because they are guessing. They can only go up a certain percentage a year, unless it changes hands. Some people ALWAYS fight their appraisal - some people NEVER do. This is why you can see identical houses in the same subdivision with tax appraisal amounts very far apart.

We are a non-disclosure state. They send out the little form after you buy, asking what you paid - but you are not obligated to tell them.

No one goes by the tax appraisal to determine value. We go by the price per square foot recently sold price ranges and condition, within a neighborhood.

Yes, tax appraisals are bogus. It is only used in collecting taxes. That's why the goal is to have your house appraisal amount as low as possible on them. There are plenty of people paying more than their fair share. That's why chris_ut was fighting his.

[GettaClue]

Zillow usually gets their most of their numbers for their matrix from public property sales records. But Texas is a non-disclosure state, so Zillow has to "zestimate" here. Thus, their ridiculous numbers for so many of the homes prices here.

[modster]

People will believe in "appraisals" done by people who have never set foot in the house in question. How can you know what a house is worth if you have never been in it? This goes for HCAD people and Zillow.

[pach84]

Originally Posted by elnina

Josh: there is a difference between appraisal and market value.

Having an appraisal of your home, typically refers to the process of having a bank determine the value of your home based on the structure, land, and other factors. This helps the bank determine if they are willing to loan you the amount of money you have offered to pay for the house. Appraisals look at a home from a stand point of “if this house didn’t exist, what would it cost to make an exact replica of it in every way” (even down to the normal wear and tear of the home). That is also the basis for determining your taxes.

Fair market value looks at the local area of the home and takes similar homes and compares them against each other. Looking at sold, pending, and active listings is the basis of how your Realtor will determine this value. By looking at the local sales data and combining it with local knowledge ( housing market trends, traffic, etc.) and doing a comparative market analysis (CMA for short), your Realtor will help you determine fair market value of your home.
Market value is how much your home is worth to potential buyer. It can be more or less of this appraised figure.

Appraisal is the process of having an appraiser determine the value of your home. The bank only decides if they want to loan you the money based off of the report. The bank has no hand in value.

Appraisals also use sales and income comparisons, not just cost approach( what it cost to build, replicate, tear down). This not the basis for taxes; they use a different system. They(HCAD) don't even enter your home, so how do you know the condition or open areas on the 2nd or 3rd floors?

Comparative market analysis is BS. You can spin it to show that value has increased in the 3-6 months, but it won't show how its decreased 20+% in the previous 6 months to show how it's gone down from say 2003. They NEVER show you market conditions over 6 months. Long term value history is just as important as short term. It's just a selling tool.

[chris_ut]

Originally Posted by josh u

You mean that the official sales price that zillow listed for your home, is wrong? ie, the public record was incorrect?

Sales prices are not public record in Texas.

[EasilyAmused]

Originally Posted by chris_ut

Sales prices are not public record in Texas.

No but HAR.COM spun a nice little deal with HCAD/MCAD/ETC a few years back...and they tell them alllll.......

Pocket Listings has become the hot thing around here lately. The house never hits MLS, therefore the AD is left in the dark, and doesn't have disclosure like everyone else.

[Lost_In_Translation]

Originally Posted by chris_ut

Sales prices are not public record in Texas.

but i thought you could request them for a fee.

[Ellen Pitts]

Originally Posted by ark671

We live in Cinco Ranch in Katy & the home prices here are increasing at a nice, steady rate. Other areas such as The Woodlands & Spring are declining. Every area is different.

Can anyone corroborate this? We are planning on buying a home in Spring and don't want to buy while things are still decreasing.

[Lost_In_Translation]

Originally Posted by pegotty

Can anyone corroborate this? We are planning on buying a home in Spring and don't want to buy while things are still decreasing.

I won't speak for the woodlands, but I've watched the inventory in spring increase steadily over the past year. Now, granted, we're not talking about Las Vegas style declining (houses are not losing 10% YOY), but unless something changes in the workplace orientation of Houston (say ExxonMobil really does move their headquarters just north of spring) there's not alot to drive the further growth of the area because of commuting issues and better (in comparison) school districts in other suburbs. But don't take advice here as the end. Talk to realtors. There may be a bottom any day now if the affordability starts reversing the trend.