Buying Arizona Real Estate » Appraisals / BPOs

Q&A with an appraiser

Tony Pomykala — Sat, 07 Nov 2009 18:15:50 +0000

Another great email from Dan W. Eason and EnergizedSeller.comQ&A With Appraiser

6 Questions for an appraiser

In an effort to understand the home appraisal process we interviewed San Antonio appraiser, John Wade. Below are four of the six questions we asked and a short answer summary.

Q. What can home sellers do if they don’t agree with an appraisal. A. Call the lending institution and express their concerns.
Q. Is there any reason why a seller should hire an appraiser before listing a home for sale with a REALTOR®? A. A good comparative market analysis (CMA) prepared by a REALTOR® should suffice. However, some sellers of out-of-the-ordinary properties could benefit from a pre-listing appraisal.
Q. How do you choose the comparable properties that you use to value a home?A. Homes that have been sold and are most comparable in terms of location, size, number of rooms, number of bathrooms, age, quality and condition are chosen.
Q. How do renovations such as an updated kitchen, swimming pool or hardwood floors affect the value of a home? A. Renovations that meet market expectations typically pay for themselves in a higher valuation.

To read his full answers and the other two questions go here.

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Lower Your Property Tax Bill

Tony Pomykala — Sun, 23 Aug 2009 07:11:39 +0000

Thanks again to Christopher Holmes of Prospect Mortgage for sending another email with valuable information in it. This time, it’s about being pro-active in reducing your property taxes:

Lower Your Property-Tax Bill
By Pat Mertz, Kiplinger’s Personal Finance, http://www.kiplinger.com/

If you anticipate a silver lining in the black cloud of declining home prices – in the form of lower property-tax bills – you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven’t caught up with the decline in home values.

In California, for example, a home’s assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn’t revalued until it’s sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home’s assessed value exceeds its market value. In San Diego County, the assessor’s office processed 80,000 appeals in 2008; the average reduction in assessed value so far is $110,000, equivalent to a tax cut of $1,200.

Many jurisdictions calculate a home’s assessed value as a fraction of its market value, so do the math to make sure your home is priced fairly. Also verify that you have received any breaks you’re entitled to, such as a homestead exemption or a reduction for seniors or veterans.

How to appeal. Go to the assessor’s Web site or office to double-check the “property card” and any working papers for your home. Are the figures for square footage and number of bedrooms and bathrooms correct? Has the assessor accounted for any features that could detract from your home’s value, such as an irregularly sized lot or a carport instead of a garage? Pull the property cards for five or ten neighboring homes that are similar in terms of age, style and features. If the assessments on similar properties are a lot lower – 10% or more – you have a good case based on uniformity.

Otherwise, if you believe your home’s assessed value exceeds its market value, you’ll have to provide sales-price data for several comparable homes. You can get that information from a real estate agent, or check the local public library or your county assessor’s or county clerk’s office. Ask the assessor whether a recent appraisal for, say, a refinancing is acceptable proof of your home’s market value.

Two chances. Read your assessment letter for details on how to appeal. You’ll probably have two windows of opportunity: During the first, you may request a reduction in the assessed value of your home for the forthcoming tax bill. During the second, you may appeal for a retroactive reduction and refund.

Until your appeal is resolved, pay your tax bill in full to avoid incurring penalties and a lien against your home. As a last resort, you could go to court, but that’s an expensive process usually best suited for commercial property owners with more at stake.

You may see advertisements for companies that will help you appeal your assessment, often in exchange for about half of any savings on your tax bill. But with the right preparation, you can probably do just as well yourself using a guide such as How to Fight Property Taxes ($6.95), from the National Taxpayers Union. The NTU’s Web site also has links to state and local taxpayer associations that may offer further insight into the appeals process.

Christopher Holmes
Prospect Mortgage
5301 N Pima Rd #130
Scottsdale, AZ 85250

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H.R.3044 – To impose an 18-month moratorium on the Home Valuation Code of Conduct.

Tony Pomykala — Sun, 23 Aug 2009 06:00:49 +0000

H.R. 3044 – Home Valuation Code of Conduct – UPDATES

Curious to see what’s going on with this? Want to keep up with what your Representative in congress is thinking on the subject?
This website is a goldmine of information!! Please check it out, then come back here and Comment on what you found! Click here to be enlightened: http://www.opencongress.org/bill/111-h3044/show

Tony Pomykala, REALTOR, ePRO; Sunrise Investments www.HomeListingsArizona.com

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HVCC/H.R. 3044 Call to action: more co-sponsors needed

Tony Pomykala — Wed, 19 Aug 2009 22:03:57 +0000

I received this email today, which I believe you all should take action with if you agree:

URGENT HVCC UPDATE:Thanks for signing our petition. HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has over 54 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.

ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.

Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives:

www.hvccpetition.com

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Property Values on the RISE in Arizona?! Yes!!

Tony Pomykala — Wed, 05 Aug 2009 17:57:04 +0000

by Tony Pomykala, REALTOR, ePro
Sunrise Investments www.HomeListingsArizona.com

This is beginning to happen more and more, so I think it’s about time we stood up and started shouting this.

“Buyers!! The market has already hit bottom and is turning around in many parts of Arizona.” If you are still waiting for the bottom, you may have missed the boat. Get with your agents and grab that house you want, because prices are actually RISING in some neighborhoods now.

Yes, let me say it again: Prices are RISING in some neighborhoods.

I’ve seen examples of it on occassion while doing Comparables for people who ask, but now it’s happening more and more. So specifically I want to show you today’s latest example of this that I came across.

The neighborhood is Sundial in El Mirage. The target property is south of Waddell Rd about a half a mile, and about 128th Avenue. It’s a 3 bedroom with just under 1400 square feet. Built in 2000, a relatively new home. It’s a short sale, listed for just $55,000.

Well, taking 6 months of Sold history within a mile of this home, the average price of 27 similar homes comes in at $61,300. Refining this list down to the most recent 3 months of Solds, and the average price actually DOES increase to $69,900, a 14% increase!

Now to be fair, you must understand that because of the price points of the West Valley, areas like this in El Mirage are among the hottest markets now in all of Arizona. I think it is safe to say that they hit bottom quite a few months ago. Average prices in many parts of the far west valley are certainly increasing now. This is due to affordability, demand, and shrinking inventory of the “affordable” houses. In case you weren’t paying attention, investors are swooping up the “bargain basement” foreclosure homes the moment they come on the market there. Come on, seriously, these are great deals!! I can’t help but laugh when I get a buyer who STILL tries to low ball those listings. Don’t waste your paper, pal. You’re going to need to offer OVER list price to have a chance of getting any of the “nearly move-in ready” homes.

Can the same be said for Scottsdale? No way. Expect prices there to continue to fall through next summer (2010), when I believe the market there will finally begin heating up again. Of course, that’s assuming incentives and interest rates remain attractive enough. If the First Time Home Buyer Tax Credit goes away as scheduled and doesn’t get extended……. all bets are off. And prices then will likely continue to slide.

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