How is this fair?

By
Real Estate Agent

According to a story done recently by Kathleen Pender, a Net Worth columnist,  Appraisers use REO and short-sold homes as comparables in their evaluation process which in turn lowers the value of surrounding homes.  The county assessor will not however, use these properties (REO's and short-sold properties) as comps for property taxes. 


My question is:  How is this fair?


As stated, in California some assessors will use these properties when looking at comps but it depends on the assessor, the county, the neighborhood, the house and if he or she can find enough standard sales.


Ms Pender is right in suggesting that home owners should seek help if they thing their home is worth less than the assessed value by asking for an informal review and if not satisfied, file a formal appeal with your court's assessment appeals board by November 30th.


Here is the full story getting a fair appraisal in a tough market



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Comments (4)

Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Dee more and more homeowners are going through the process of contesting the assesment these days.

Sep 17, 2011 04:58 PM
Dee Mayers
Covina, CA
San Gabriel Valley, CA

Jennifer,

And so they should.  I understand city governments need revenue, but how is this fair to the taxpayer–to be penalized due to no fault of their own?

Sep 18, 2011 12:09 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Dee, unfortunately, it's allabout the numbers.  If there are 2 REO's that sell for $100,000, a short sale that sells for $125,000 and a "fair market" sale that sells for $150,000, the "AVERAGE" price of a home is $118,750.  All they're looking at is raw numbers.  Do I think it's "fair"?  It's irrelevant - everyone is looking at hard numbers and all of the REO's are hurting everyone, unfortunately.  Then, there's the issue of the REO's sitting on the market and the weeds are knee high, the interior's been stripped or damaged, further driving down value let along curb appeal of the neighborhood - it's a crazy spiral - one that I hope stops soon!!!!

Sep 18, 2011 05:40 PM
Dee Mayers
Covina, CA
San Gabriel Valley, CA

Juli,
It's all about the numbers and the numbers don't add up.  My concern is the home owner out there, through no fault of their own, their properties are dragged down in value and the kick in the pants is that the property taxes remain the same.  How is that really fair to Mr and Mrs home owner?  I hope the spiral stops too.

Sep 19, 2011 06:10 PM