Tax Assessment/Appraisal on Forclosure? Anyone Have Experience? (Magnolia, Montgomery: sales, foreclosure)

[ErikU19]

I'm looking at a Foreclosure in Magnolia. The Appraisal on the house is 496k. The selling price is going to be about 210-220k.

Will the assessed/appraised value of the house automatically reset when the house is purchased at the new selling price? If not how would one bode with the county trying to protest the huge difference in appraisal and market value?

The house is partly unfinished and is in foreclosure...the only problem I see is that its 4800sq ft...which if the appraisal is drawn from comparable comps in the area I dont stand a chance...

Lend me your experience!

Thanks.

[Supermac34]

It will be considered a distressed sale and the selling price will not be considered fair market value. Also, since the home is unfinished, it is probably currently listed as unfinished and will be updated to a completed home.

Normally you could protest and take the closing papers down to the appraiser and they will usually set it to the sales price you paid if its lower than the appraisal. In a distressed sale, all that goes out the window and they will appraise you according to comps.

Also, is the appraisal number you have the current county appraisal or is it the mortgage appraisal? Those have no bearing on the county appraisal.

[ErikU19]

per county tax records

[MissDaisy]

When do the tax assessments / appraisals come out for Montgomery County? We purchased April 08, and this IS our first rodeo!!! Thanks!!

[chris_ut]

I got my tax appraisal around then. You should call the appraisal office and have them email it to you.

[ErikU19]

This house is still overappraised at 496k even when it will be completed. They are assessing it at about $94 a square foot which is insanity.

I think a fair assessment would be in the high 300's or low 400's...even then with this declining market that may be too high.