cost of housing Johnson City vs. Kingsport (for sale, real estate)

[mbmouse]

From what I see in my business, Kingsport is a tad more expensive than Johnson City as far as housing. Example: Sullivan County tax rate is 2.530 and Kingsport is 2.260 for a total of 4.790 if you live within the Kingsport City limits.
Washington County tax rate is 1.870 and Johnson City tax rate is 1.93 for a total of 3.80 if you live in the Johnson City City limits. These are all based on a 25% assessment of appraised value which is not the same as a appraisal for sale or refinance.
Also on appraisals I see several dollars more per square foot in Kingsport than in J.C. It doesn't quite make sense to me as I think J.C has more to offer shopping wise, a better library, more public places and so forth than Kingsport.
I have also found that a comparable house in Kingsport (comparable neighborhood as well) will cost you several thousand more than in Johnson City. I also prefer the way J.C. is laid out verses Kingsport. Note, I live in Washington County, just north of J.C and work in Kingsport.

As far as mobile home "parks" I only know of a few in each city but as far as zoning goes outside of the city limits, which you do have to check the map closely as what you might think is in city limits may not be, you can have a mobile next to a construction built home but it has no effect on an appraisal. An appraiser has to use comparable homes to the subject property within 5-10 miles from the subject. Example, if you are selling a 2000 sq ft home, the appraiser has to find other 2000 sq ft homes within that distance that has sold or been valued within the last 1 or 2 years. Granted, it also has to have the same number of bedroom, bathrooms and over all rooms. ( as a note, if you put $50k of Italian marble in your house, it will add some value, but unless there is another house that has that 50k worth of marble, it really won't add much value to your home.) That mobile home next door would give no weight to your appraisal. However, it can have an effect on the saleability of the property.
This is a good example of needing to do your research when moving to a new state/area. How appraisals are done in TN is WAY different than how a house is valued in FL. It is my suggestion to read through the state site. Read through the state laws, requirements of business owners, banking and real estate regulations and other such things, it will give you a good idea of how things work.

[dreamofmonterey]

mb- regarding the last part- I was told by a realtor (which I also looked up) that when there is a trailer in the area, that DOES count into the "market value" of the general area. It brings the average down. I did research this, and Remax for example will calculate every property sold- doesn't matter if it's a 2500 sq. ft. house or shack, each price is totaled into the average market value. In that respect, it affects you in that you may want to make a decision based on what is the next block over.

[mbmouse]

Oh, don't get me wrong, I was not disagreeing with you. You are correct, Real Estate agents do do what you are saying when they are suggesting to the homeowner what they should list there house for. However, when it comes right down to it, it doesn't matter what the agent says it is worth, it is the licensed appraisers report that matters. Meaning, if you need a mortgage, the lender only goes by what the appraiser says it is worth. In TN, if there is a 10k valued mobile home next to a 300k house, that house's true appraised value is 300k as that mobile home is not used as a comparable sale. Whether someone will buy it for that IS another matter. My point is, large companies like ReMax, Century21 and others like that use those models on a national scale, TN appraisal laws, rules and regulations are different than other states, as each state has there own. In TN the appraiser can not use the house right next door as a comparable, they have to use houses of same, square footage, number of rooms, basement, garage size, land size, etc. Even if those comparables are several miles away as the crow flies. So technically you could have a 300k house house that is the only one of it's kind in a two block radius, with the rest of those houses valued at 50k. Yes, it brings the average up of the neighborhood, but from the appraised standpoint, not the true value. The 50k homes are not going to go up and the 300k will not be brought down. Mind you this value is not only for a mortgage/sale but for homeowners insurance too. If you owned the 300k house and 50k houses were built up all around you, you wouldn't want your homeowners coverage to go down, you would never be able to rebuild in the event of total destruction. I believe this is why it is done this way in TN. This is the up side I see in no or little zoning and how appraisals are done. It is to protect the homeowners assets.
Realtors know this and do take it into consideration, good ones that is. I have seen some Realtors tell people their house is worth much more than it will ever sell for. I hate when I see that.
I'm not quite sure what you mean by " average market value" well, I do know what you mean, but getting an average costs of homes in your neighborhood is good to know, but really has no effect when it comes to selling or buying your home, or getting a true value of your house.

[dreamofmonterey]

Right. You are right about appraisal. I was just talking about, if you are going to LIST a house. When selling it, it is just a factor to consider.

sunny.

[mbmouse]

I am starting this new thread as the one these were orginally posted in was about renting, these responces are about buying.



Editied in -----> Don't know how this post got to the bottom, was sopposed to be on top, sorry.