Another sign that the real estate market is tanking - Mothering Forums

Forum Jump: 
Reply
 
Thread Tools
#1 of 34 Old 03-22-2008, 03:36 AM - Thread Starter
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,825
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We got our 2008 property tax assessment paper in the mail this week. According to the county, the value of our home and property has declined by over $20K (about 8%) since last year.

I'm not expecting our property taxes to go down, since we're still receiving the same services as we did last year.

We bought this house less than a year ago. I knew that the market was going soft, but receiving this assessment really surprised me. I don't know if the assessment is accurate. The county's assessment for the property in 2007 was very close to what we paid for the house. If the assessment is accurate for this year, it means that we've lost a good chunk of our equity in our home. I guess that means we'll be staying here for awhile, whether we want to or not.

Anyone else have a lower assessed value on their home this year? My FIL, who lives in the same state but in a different city, also saw a reduction in the assessed value of his home this year. I'm wondering if this is just happening in MN, or if other parts of the country are also seeing this.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
Sponsored Links
Advertisement
 
#2 of 34 Old 03-22-2008, 11:20 AM
 
Mom2Adam's Avatar
 
Join Date: Dec 2003
Location: Virginia
Posts: 484
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
WOW! I think that has to be incorrect. I would call the assessment office to verify they have your information right (land, home details etc).

Here in a rural area east of Richmond, VA - our assessment has gone up 55K in the past two years. We were quite upset (because of the increase in taxes LOL) until we checked with our realtor and found that we could actually list and sell our house for about 30-40 K more than the assessed value! I think the housing market has declined here in this part of VA (longer times on market) but overall the homes keep climbing in value. My BIL just bought a house in Richmond, VA for right around the asking price.

Good luck!
Mom2Adam is offline  
#3 of 34 Old 03-22-2008, 11:46 AM
 
Mom of 4 Sweeties's Avatar
 
Join Date: Dec 2007
Location: Richmond, VA
Posts: 24
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm in the Richmond suburbs and our assessments have gone up, though I know the market here is much stronger than in many parts of the country.

I'd contact the Assessor's Office and ask about local trends, comparable homes, etc.
Mom of 4 Sweeties is offline  
#4 of 34 Old 03-22-2008, 11:50 AM
 
mamadecuatro's Avatar
 
Join Date: Nov 2006
Posts: 111
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Richmond must be an exeption- here our value lowered. (PA)
mamadecuatro is offline  
#5 of 34 Old 03-22-2008, 12:17 PM
 
Girlo's Avatar
 
Join Date: Oct 2004
Location: Kitsap County, WA
Posts: 496
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm in WA (west of Seattle) and our assessment went up this year. The land is actually valued quite a bit more than the house! And it's a reasonable house! TG we have 2 acres so we have some value in our asset column for the future. We have NO plans to leave, but we could easily sell our house for close to double what we paid for it 5.5 years ago. And that's taking into effect the housing slowdown.

We're just lucky we bought at the right time.....and we bought a house that needed to be gutted that no one else wanted.

Shannon & Paul...married since 2000. Parents to Alexander Paul Martin - 30 October, 2003 Grace Elizabeth Maile - 12 June, 2009
Girlo is offline  
#6 of 34 Old 03-22-2008, 01:07 PM
 
dsaucone's Avatar
 
Join Date: Mar 2008
Location: wayne county, New York
Posts: 1,011
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Girlo View Post
I'm in WA (west of Seattle) and our assessment went up this year. The land is actually valued quite a bit more than the house! And it's a reasonable house! TG we have 2 acres so we have some value in our asset column for the future. We have NO plans to leave, but we could easily sell our house for close to double what we paid for it 5.5 years ago. And that's taking into effect the housing slowdown.

We're just lucky we bought at the right time.....and we bought a house that needed to be gutted that no one else wanted.
I've heard seattle is suppose to be #1 on the market right now.

S-d D which made them three. M grew lonely, and now there's baby D.
"Who of you by worrying can add a single hour to his life?"
dsaucone is offline  
#7 of 34 Old 03-22-2008, 02:02 PM
 
missi66's Avatar
 
Join Date: Mar 2005
Location: texas
Posts: 226
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm in Austin and ours went up 3 percent.
missi66 is offline  
#8 of 34 Old 03-22-2008, 02:09 PM
 
rainbowmoon's Avatar
 
Join Date: Oct 2003
Location: Vermont
Posts: 10,800
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
ours went up in AZ.

Blissful Mama to DD-(5), DS-(6) and someone new due in November!
rainbowmoon is offline  
#9 of 34 Old 03-22-2008, 02:21 PM
 
katheek77's Avatar
 
Join Date: Mar 2007
Posts: 4,112
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
My parents are in Orange County, NY, about 2 hours north of NYC.

Their assessment has remained basically steady over the last few years. Even with the market tanking, demand is definitely increasing in that area- so, it's sort of evened out for them, if that makes sense? I don't really see it decreasing anytime soon, as developers are now looking at land near my grandmother (2.5 hrs north of NYC) for commuters.

My parents' home DID almost triple in value over just the last 12 years or so - just due to the housing boom in that area, and it's worth about 10x what it was when they bought it in 1977, thanks to the city commuters wanting housing "in the country".
katheek77 is offline  
#10 of 34 Old 03-22-2008, 06:41 PM
 
my2girlz's Avatar
 
Join Date: Oct 2002
Location: Twin Cities
Posts: 2,444
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I'm in MN and my assessed value was up.

SAHM to the munchkins (14.5, 11.5, 9.5, 3, and almost 2)
my2girlz is offline  
#11 of 34 Old 03-22-2008, 07:25 PM
 
siennaflower's Avatar
 
Join Date: Aug 2004
Location: Hogsmeade
Posts: 2,160
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Gulf Coast Texas and ours went up too.
siennaflower is online now  
#12 of 34 Old 03-22-2008, 07:31 PM
 
candipooh's Avatar
 
Join Date: Jun 2004
Location: San Bernardino, CA
Posts: 3,870
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
That is interesting that so many of you say that your value went up. Cool!

We bought our first house in late 2003 for $134,000 in Southern California. We keep a close eye on what houses in the area are selling for. (sil can run comps for us) The value went up to about $300,000 when the house prices went crazy. It is now worth about $265,000. So yes, it has gone dow a LOT but it is still worth way more than what we bough it for.

We feel very luck that not only did we not loose our home in all of this crazyness we have a very low monthly payment. We bought at the perfect time.
candipooh is offline  
#13 of 34 Old 03-22-2008, 08:15 PM
 
grisandole's Avatar
 
Join Date: Jan 2002
Location: Southern California
Posts: 5,060
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 2 Post(s)
Candice, you totally got in at a good time...right as prices started to really get crazy! I'm struggling with if we should buy now or wait one more year. We can afford a house now, but the whole process freaks me out. I suppose it will still freak me out next year, lol. Now is the first time since 2000 that we can afford a house here in SoCal. Granted, we'll have to move to the high desert, but still!

"Have faith in yourself and in the direction you have chosen." Ralph Marston

grisandole is offline  
#14 of 34 Old 03-22-2008, 08:25 PM
 
candipooh's Avatar
 
Join Date: Jun 2004
Location: San Bernardino, CA
Posts: 3,870
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by grisandole View Post
Candice, you totally got in at a good time...right as prices started to really get crazy! I'm struggling with if we should buy now or wait one more year. We can afford a house now, but the whole process freaks me out. I suppose it will still freak me out next year, lol. Now is the first time since 2000 that we can afford a house here in SoCal. Granted, we'll have to move to the high desert, but still!
It is growing so fast in the high desert!
It really is a scary decision on buying a house. Even before all of this crazyness. But you should be able to get a good deal. houses have been sitting on the market for so long that sellers will take just about any offer. I wonder though if house prices will start going up with the interest rates being so low.

Come live down the stree from me plenty of "for sale" signs.

Sorry, got a little OT
candipooh is offline  
#15 of 34 Old 03-23-2008, 05:22 AM
 
Shellie's Avatar
 
Join Date: Dec 2003
Location: Arizona
Posts: 536
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
My parents bought their house in a Phoenix suburb in 2005 for $340k, which was about $80k more than the original owners had paid in 2003. Last week they got it appraised for a refinance...the appraisal came in at $215k (and they can't get the refi now). It makes me glad we don't currently own a home right now, because we would have bought in 2005.

Shellie
Declutter - 789/2010 (counting the stuff on my porch waiting for a Freecycler to pick it up! )
Shellie is offline  
#16 of 34 Old 03-23-2008, 01:08 PM
 
Noah's mommy's Avatar
 
Join Date: Sep 2004
Location: South of the Equator
Posts: 465
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We are just north of Richmond (far reaching DC area) and though our assessment is up over 100,000 since we bought in 2004 we'd have to sell it for about 80,000 less than our assessment. We just met with a realtor on Friday (we're headed to Brazil) and the comps in our neighborhood are FAR below our assessment.

Mama to Noah and Sophie and Stella 7/4/ 2010
Noah's mommy is offline  
#17 of 34 Old 03-23-2008, 01:29 PM
 
Dreaming's Avatar
 
Join Date: Feb 2004
Location: Very grateful.
Posts: 3,316
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
We are in Minneapolis and our assessment came $10K less than what we paid for our home 1.5 years ago. I think it's a matter of waiting it out.
Putting your house on the market during a slow time means you had better make sure everything is staged to perfection. Having "extras" that most homes in your price range don't have is huge, too.

DS 6 DD 8
Dreaming is offline  
#18 of 34 Old 03-23-2008, 01:37 PM
 
candipooh's Avatar
 
Join Date: Jun 2004
Location: San Bernardino, CA
Posts: 3,870
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by Noah's mommy View Post
We are just north of Richmond (far reaching DC area) and though our assessment is up over 100,000 since we bought in 2004 we'd have to sell it for about 80,000 less than our assessment. We just met with a realtor on Friday (we're headed to Brazil) and the comps in our neighborhood are FAR below our assessment.
That sucks. Not the more to Brazil, that sounds wonderful! But the having to sell it for $80,000 less than the assessment sucks.
I thought that an assessment was finding out how much your house was worth. Why did the assessor say it was worth 80,000 more than it is.

s
candipooh is offline  
#19 of 34 Old 03-23-2008, 02:13 PM
 
MamaMonica's Avatar
 
Join Date: Sep 2002
Location: lalalala life goes on
Posts: 12,862
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Our assessment went up $30,000. I doubt we could get what it's assessed for if we sold it today. Houses are sitting all over the neighborhood- one up the street has been pulled off the market and put back on twice in the last year. Another was sold at a real estate auction last year- probably a foreclosure.

Being right is not always fair, but being fair is always right
MamaMonica is offline  
#20 of 34 Old 03-23-2008, 02:34 PM
 
dsaucone's Avatar
 
Join Date: Mar 2008
Location: wayne county, New York
Posts: 1,011
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
It seems like assesments can be so misleading sometimes. Afterall, a house is only worth as much as someone is willing to pay for it.

S-d D which made them three. M grew lonely, and now there's baby D.
"Who of you by worrying can add a single hour to his life?"
dsaucone is offline  
#21 of 34 Old 03-23-2008, 04:28 PM
 
Noah's mommy's Avatar
 
Join Date: Sep 2004
Location: South of the Equator
Posts: 465
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
That sucks. Not the more to Brazil, that sounds wonderful! But the having to sell it for $80,000 less than the assessment sucks.
Luckily, we aren't going to sell now. We are going to try and rent out our home. We're only going to be in Brazil for two years, and hopefully we can wait for the market to come back a bit before we sell. Thankfully, our expenses are paid in Brazil and we can afford to cover our mortgage if needed. I'd hate to HAVE to sell right now.

Mama to Noah and Sophie and Stella 7/4/ 2010
Noah's mommy is offline  
#22 of 34 Old 03-23-2008, 04:36 PM
 
lmonter's Avatar
 
Join Date: Feb 2004
Location: My own private Idaho
Posts: 6,359
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Yup, that's been happening here, too. But house and land prices almost doubled over the span of two years (2004-2006), so now they're coming back down to reality.
For us though, property taxes are a percentage of what your house/land is worth - it varies depending on that year's value. So for us, our property taxes have gone down a smidge. Luckily we bought just before all the insanity happened - there's no earthly way we could afford a house like ours now (2000sf 3bed 2bath, garage, etc.); we *might* be able to afford a 2bed 1 bath 900sf bungalow with a strip of grass by the sidewalk. Insane.

Wife to an amazing hubby, mother hen to four chicken3.gif 
(If you're curious, 2003, 2006, 2008, 2010, and yes, it's a busy house)
lmonter is offline  
#23 of 34 Old 03-23-2008, 05:45 PM
 
Petersmamma's Avatar
 
Join Date: Mar 2006
Location: FINALLY nice outside, TX
Posts: 2,308
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Quote:
Originally Posted by dsaucone View Post
It seems like assesments can be so misleading sometimes. Afterall, a house is only worth as much as someone is willing to pay for it.
That is SO true!! Ours went up last year about 10k, and we were kinda pissed b/c we had tried to sell at 10k BELOW market value and had ONE showing in a year. So, it's obviously not worth what they thought it was worth. We appealed the increase but missed our appeal (oops!) and just got our assessment.

Ours has gone done about 20k since last year, like the OP. But in our county, they had a record number of appeals last year so they might be reassessing things a bit more accurately. And I live in a zip code with a REALLY high number of foreclosures (one of the highest percentages in the county).

We kinda figured out that we need to live here for a while when we tried to sell 2 years ago and nobody even came to look.
Petersmamma is offline  
#24 of 34 Old 03-23-2008, 05:51 PM
 
`guest`'s Avatar
 
Join Date: Nov 2001
Location: North
Posts: 994
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I agree with pp, that values were so outta control they HAD to come down, although some areas of the country are still ok.

In my neighborhood, (Bozeman, MT) there were two houses on the market for 6-12 mos. They both sold in the past two weeks, and had increased quite a bit in value over the past couple of years...I am not sure if it is because there is new districting for the schools (prior to this you could go to any school regardless of where you lived) or just a healthier market...But we live in a "niche" market so it's not indicative of the country at large (college town, ski resort, etc. etc.)

Our house increased and then decreased in value by the way! It is now stabilized, I hope...
`guest` is offline  
#25 of 34 Old 03-23-2008, 09:45 PM
 
DesireeH's Avatar
 
Join Date: Mar 2003
Location: Orange County, CA
Posts: 8,218
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Down here.

We are so upside down its not even funny.

Desiree

DesireeH is offline  
#26 of 34 Old 03-24-2008, 03:37 AM
 
Ornery's Avatar
 
Join Date: May 2007
Posts: 1,870
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
I live in the Willamette Valley in Oregon and it is so depressing to drive around. In our neighborhood (a very "tony" neighborhood in which we are the only rental and the only house built in 52), there are too many houses for sale. A house just down the street has been on the market forever, started out at $399K and is now down to $250 or something like that. My husband runs jobs in construction and some of the new houses in the Portland metro area that were selling for over a million are now selling at $500K-$600K.

Assessed value has started to go down too.
Ornery is offline  
#27 of 34 Old 03-24-2008, 01:45 PM
 
lucyem's Avatar
 
Join Date: Apr 2005
Posts: 2,254
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Where I am in NH we see a lot of the odd stuff sitting like the 19080's decorated cape or the ugly oddity or the really old uses lots of oil to heat houses. Anything good is selling at fair prices. It takes a little longer, but they are selling. Overall prices have come down a little bit. But not like other places.
lucyem is offline  
#28 of 34 Old 03-24-2008, 05:08 PM - Thread Starter
 
annethcz's Avatar
 
Join Date: Mar 2004
Location: on the beautiful prairie of MN
Posts: 9,825
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Thanks for all of the responses.

I never dreamed that our assessed value would go DOWN. This isn't our first home. In fact, we've profited twice from the real estate market increase that happened in previous years. We bought our first house in 1998, sold it in 2000 and made a 30% profit. We bought our second house in 2000, sold it in 2007 and made a 25% profit. I knew that the market was softening and that the huge increases in value weren't sustainable. I guess I was just expecting the assessed value to remain the same, not decrease.

In any case, I know that our house is only worth what someone else is willing to pay for it. We're not planning to move in the immediate future. But it's a little scary to think that even if we wanted to move, we may not be able to. Such is life, I guess.

New signature, same old me: Ann- mama of 2 boys and 2 girls, partnered to a fabulous man.
I'm an unintentional weasel feeder and I suck at proofreading.
annethcz is offline  
#29 of 34 Old 03-24-2008, 05:50 PM
 
Knittin' in the Shade's Avatar
 
Join Date: Feb 2003
Location: near Philly, PA
Posts: 4,541
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
we're in the southeaster suburbs of Philly and ours went up about 3%.
Knittin' in the Shade is offline  
#30 of 34 Old 03-25-2008, 02:10 AM
 
MistyB's Avatar
 
Join Date: Oct 2004
Location: Houston, TX
Posts: 887
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Ours went up. And home values have not gone down at all near where we live. The market has a short inventory and things are still selling and not taking any hits on final sales price. 5 fmiles away in not so nice areas...no as great. But nothing like what is happening elsewhere. The local market has a steady 4-6% increase each year.
MistyB is offline  
Reply

User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page


Forum Jump: 

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off