Property tax assessment

[Arraya]

I 100% agree with you. Specifically, tract homes you could not legitamately swing 10%.

[Arraya]

I 100% agree with you. Specifically, tract homes you could not legitamately swing 10%.

[SD Realtor]

Guys I am not an appraiser nor am I an assessor. However I believe if the RPA said 1M then your tax will be based on a 1M purchase price. The best way to get the answer is to call the assessor. How was the purchase agreement written?

SD Realtor

[SD Realtor]

Guys I am not an appraiser nor am I an assessor. However I believe if the RPA said 1M then your tax will be based on a 1M purchase price. The best way to get the answer is to call the assessor. How was the purchase agreement written?

SD Realtor

[Bugs]

Some developers include the personal property in the sales contract for the realty and some write up separate sales contracts for realty and personal property. Of course, I’ve also seen some pretty creative accounting when it comes to allocating which is which.

This is one reason appraisers are required to review the sales contract, to identify any non-realty interests that might be included in them. Cash back at closing, 2-week vacations, new cars, 60″ plasma, etc..

Unfortunately, there are enough appraisers out there who haven’t been doing what they’re supposed to do. Enough so that a lot of the developers have becomed accustomed to not providing sales contracts for review and acting surprised when an appraiser asks for one.

That was then and this is now – as others have commented, the lenders are going back to underwriting their loans. And they’re actively looking for sales concessions and other non-realty interests in these transactions.

Anyways, the tax assessment is usually based on the sales price for the realty, but there are exceptions when there are indications the transaction price doesn’t reflect the market value.

[Bugs]

Some developers include the personal property in the sales contract for the realty and some write up separate sales contracts for realty and personal property. Of course, I’ve also seen some pretty creative accounting when it comes to allocating which is which.

This is one reason appraisers are required to review the sales contract, to identify any non-realty interests that might be included in them. Cash back at closing, 2-week vacations, new cars, 60″ plasma, etc..

Unfortunately, there are enough appraisers out there who haven’t been doing what they’re supposed to do. Enough so that a lot of the developers have becomed accustomed to not providing sales contracts for review and acting surprised when an appraiser asks for one.

That was then and this is now – as others have commented, the lenders are going back to underwriting their loans. And they’re actively looking for sales concessions and other non-realty interests in these transactions.

Anyways, the tax assessment is usually based on the sales price for the realty, but there are exceptions when there are indications the transaction price doesn’t reflect the market value.

[gn]

Thanks to everyone for the answers (especially HLS & Bugs).

Enough so that a lot of the developers have becomed accustomed to not providing sales contracts for review and acting surprised when an appraiser asks for one.

So, developers did this because it makes it easier for the buyers to finance the purchase ? That is, otherwise, the buyer would have to come up with the cash for the personal property ? And the buyer doesn’t mind because the higher property tax (higher assessment based on the higher purchase price) is a small price to pay ?

[gn]

Thanks to everyone for the answers (especially HLS & Bugs).

Enough so that a lot of the developers have becomed accustomed to not providing sales contracts for review and acting surprised when an appraiser asks for one.

So, developers did this because it makes it easier for the buyers to finance the purchase ? That is, otherwise, the buyer would have to come up with the cash for the personal property ? And the buyer doesn’t mind because the higher property tax (higher assessment based on the higher purchase price) is a small price to pay ?

[JJGittes]

HLS

Did you say that an appraisal will max out at the purchase price? In other words, if the agreed upon price is $750k, but in your honest opinion, based upon recent comps and everything else, it’s worth $780k, the appraisal would still come in at $750k? How come? I’m interested in this…thanks

[JJGittes]

HLS

Did you say that an appraisal will max out at the purchase price? In other words, if the agreed upon price is $750k, but in your honest opinion, based upon recent comps and everything else, it’s worth $780k, the appraisal would still come in at $750k? How come? I’m interested in this…thanks

[Author]

Posts