Property Value/Appraisals RANT

[two_bit_score]

Yes, but what he can pay is determined by what his income is. So as long as the wage level is depressed, so will housing prices.

I guess that depends a lot on the area. I can see there being a real big difference in Michigan and Texas.

BTW, I saw where the Federal Government spending has grown 12 times Faster than median income nationwide. When federal spending increases faster than Americans paychecks the burden of government squeezes people out of a lot of things, housing included.

 

[two_bit_score]

It won't. The local developers have been trying to get this built for 20 years. What really gets me is that the vacancy rate on commercial property along Grand River near Latson is 30% or more. And they are going to build some more. And they will get lots of tax incentives.

Many cities here have cut back dramatically on handing out tax incentives to developers and even businesses. Taxpayers got fed up and demanded it. It still happens but not as much and not for as much as in the past.

 

[MotorSeven]

You should just be quiet. When I moved to our area, it was very rural. All the development has done is raise my taxes. New folks means new schools, new roads, new fire department stuff, more police, all paid for at todays prices. And a lot of development never pays for itself. We have had a bunch of small factories locate here over the years. All of them get tax deals to locate here, low cost development loans, training funds from the state, all for $8 per hour jobs. And these places are owned by big corporations, not little businesses. And usually by the time the tax breaks run out, the companies come up with a deal: give us more or we will leave for someplace that will. Or they just walk away, send the jobs to Mexico.

Good point..I'll "shuttie" now

 

[sshaw]

Sticking to the 2010 Appriasal, and the 2013 appraisal only. CLEARLY the 2010 appraisal was wrongly inflated. AG zoned land has NOT dropped from $4,500 per acre to $3,000 in 29 months.

So... Do I have any recourse? Can I go to the Bank and point out they sold me an overinflated apraisal and both THEY and I are now left holding the bag on a turkey?

Is there anything I can do about the bad appraisal in 2010?

No, I don't think there is anything you could do if the appraisal was bad in 2010. I don't think it was bad though.

I said in my first post that your $410K second appraisal was reasonable based on my own appraisal and experience in the local market. I also think your earlier appraisal was reasonable. In fact, they are both self-consistent if you think like an appraiser.

An appraiser will compute the value of your property based on comparable property sales. For each comparable, the appraiser will add or subtract adjustment values based on differences between your property and the comparable property in terms of square footage, lot size, and other factors. The appraiser will do this for several comparables and average the results.

In August 2011, my appraiser used a value of $3K/acre for differences in lot size and a value of $40/SF for differences is house size. Your appraiser probably used very similar values. So, if you use your own current house as a comparable, you would get $40 per square foot in your new appraisal for the increase in size of your remodeled home. Your new total should thus be about $365K + $40/SF x 1334SF = $419K. That's pretty close to your $410K appraisal.

Besides, if we assume for a moment that the 2010 appraisal was way high, would you really rather have had the appraisal come in at a much lower value? You would have had to make up the difference in cash, or the bank might have even refused to approve your loan entirely. Best case you would have been out a lot more cash. Worst case you wouldn't have been able to buy your dream property.

 

[MossflowerWoods]

The 2010 appraisal may not have been inflated that much. When I just called up Ladysmith, Va on a realty web site it showed a LOT of foreclosures.

Have you gone down to the tax assessors office and compared values of other similat tracts of land?

Have you cut much lumber since the first appraisal?

I'm AMAZED that forested Ag land was appraised at $4.5K as Ag land in 2010 unless it had fully mature trees about to be clearcut for timber at 2007 prices. I'm amazed that it still appraised at $3K. I paid about $1K and acre for the last 73 I bought in Mississippi, and there's some next to me that's almost ready for harvest and they are only asking about $2K.

I'd be surprised if you'd get much relief from the bank but they might let you do a refi at todays rates.

Hang in there, keep improving the property

Newbury,

Land values swing wildly across the nation, I'm not sure comps between Miss & VA really have any merit (no offence intended).

I've not been to the asessors office, and my assessment is not even close to what I paid, candidly I think the assessor's values for real estate and personal property are insane and not pegged to anything I can fathom, therefore I avoid even speaking to them.

The small local bank I am using has the same rates today as they did in 2010, no relief there...

In NOv 2010 I had the timber Thinned. It really needed to be done 10 or more years earlier, but the prior owners had NO IDEA how to manage a timber crop. I've been trying to get smart fast... I has a timber cruise done and he estimated me at well over $1100 per acre in 2010, and he was light, the loggers said my stand was dense and produced almost double what they estimated. My trees are growing nicely since the thinning and the additional sun it allowed in.

As to hanging in and keep improving, that seems to be my only choice...

I appreciate the insight and shared experience.
Thanks,
David

 

[MossflowerWoods]

No, I don't think there is anything you could do if the appraisal was bad in 2010. I don't think it was bad though.

Worst case you wouldn't have been able to buy your dream property.

SShaw,

Hey Neighbor!

I'm not exactly sure this property is my "dream property". The wife has always figured this is my "training property" and that I'm here to learn so I can do better on the NEXT property... Somedays it is closer to a nightmare property...

I wrote a bunch os stuff but decided I was just complaining and beating a dead horse and deleted it...

There are days I truly wish this deal had just completely fallen apart and we could have walked away, dreams still intact...

I appreciate the moral support...

Be well,
David

 

[KTurner]

I've not been to the asessors office, and my assessment is not even close to what I paid, candidly I think the assessor's values for real estate and personal property are insane and not pegged to anything I can fathom, therefore I avoid even speaking to them.

You can check the caroline county assessments without having to visit their office. Go to their online GIS website. Think of properties comparable to yours, go to the map tab to locate them, click them and then select view property details. This will show the assessment along with the information they used to calculate the assessments (building details, etc). They have theirs setup to only show the 2011 assessment, so you can't see how they changed over time (my county has three assessments shown).

Probably won't help, but you can see if something is obviously wrong. With my property, I discovered that they had my assessment high due to listing one more acre than I actually have. There are appeals processes in my county (in VA) and the board that hears the appeal is made up of people NOT in the govt. At least one of them is a local realtor. If the assessments are uniformly insane, I doubt it makes much sense to do anything. But if everyone elses assessment is sane, and yours is insane, you are paying disproportionate taxes and should get it fixed.

Keith

 

[sshaw]

SShaw,
I'm not exactly sure this property is my "dream property". The wife has always figured this is my "training property" and that I'm here to learn so I can do better on the NEXT property... Somedays it is closer to a nightmare property...

David, I based what I said on your own words:

I did not want to own 3 houses, but suddenly I was just having my dream acreage fall into my lap, and suddenly it was mine.

Plus you talked about family subdivisions for your daughters, etc. It does sound like you like your property a lot.

Anyway, If you can stand it and come up with an interim solution to your space problem, your best bet is probably to hang with it. If you can save up the money, or build up enough equity in the property, you can do the improvements you need and want.

Good luck!

Scott

 

[two_bit_score]

SShaw,

Hey Neighbor!

I'm not exactly sure this property is my "dream property". The wife has always figured this is my "training property" and that I'm here to learn so I can do better on the NEXT property... Somedays it is closer to a nightmare property...

I wrote a bunch os stuff but decided I was just complaining and beating a dead horse and deleted it...

There are days I truly wish this deal had just completely fallen apart and we could have walked away, dreams still intact...

I appreciate the moral support...

Be well,
David

Nothing in this world is forever. We are just passing through. Do your best in all things and don't be discouraged. That's the way I see it anyway.

 

[MRSDOUGLAS]

You are married with children right? I grew up doing home improvement projects with my folks. It wasn't until my dad died that I realized my mom was the instigator! You have a built in crew, they may require serious direction but still.... just sayin

My biggest issue there is T I M E... I am a busy fool, and too many of these are not one person projects...

Thanks for the support.
David