Concern over a huge drop in city assessment value

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Lily left the valley
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Concern over a huge drop in city assessment value

Post by Lily left the valley »

So out of the blue, when I was in process of checking to see if there was a change in status on a property we're interested in, spouse points to one that came up in the general search and says, "What about that one?"

We had already talked about that one. It's a 1900 Victorian. Much bigger than I wanted, and I had no idea he was even interested in such a style which I called him out on. "I don't care about style. I just like interesting houses." First time this little tidbit was revealed despite all the conversations we've had ever. :roll: I also noticed the price dropped 10K, and was now labeled a short sale. There were other things that I wasn't thrilled about at all with that place, but he still seemed intent. I was worried it was the price attracting him, he says that's part of it, but not all.

After that house comes up again in our usual chat when he's settling in to bed, he says offhand that maybe it wouldn't hurt to take a look at it even though he still wants to do the backup offer on the bungalow. (Had a VM from the Selling Agent yesterday who is away for the weekend, she said she thinks the offer they got is a cash offer.)

So I do the usual check the tax card and online documents related, and along the way I noticed this on one site's listing (emphasis mine):

Tax History
Year Property taxes Change Tax assessment Change
    2016 $2,432 +4.3% $118,800 +1.8%
    2015 $2,332 -35.2% $116,700 -38.8%
    2014 $3,600 -0.4% $190,800 -7.8%
    2013 $3,614 +5.9% $207,000 +1.1%
    2012 $3,412 +10.3% $204,700 +3.8%
    2011 $3,092 +2.1% $197,300 -3.1%
    2010 $3,027 +0.6% $203,700 -11.5%
    2009 $3,009 -0.8% $230,200 -8.1%
    2008 $3,032 +1.2% $250,400 -2.8%
    2007 $2,997 +2.4% $257,500 +8.3%
    2006 $2,926 -- $237,700 --

That plunge from 2014-2015 makes me itch. It does creep up a bit this year, but....wow that leaves me with a bad feeling.

Current owner bought property from another relative in 2001 (PO then turned around and paid off a medical debt from records I found.) Owner separated from partner he initially got the home with (both on mortgage) in 2014. (Apparently she was quite unhappy with him. She reworded the usual deed for a less that $100 value to "for no consideration paid" which the official made her asterisk to a comment with the usual wording. :P Both are now living in CT, at different addresses. No idea when they moved, as they were living in Gardner at another address at the time of purchase.

Supposedly the heating and a bath have been "updated", as well as windows :evil: . It also seems that at some point they divided it at least electrically for an apartment within, though nothing about two kitchens on the info I've found, just two full baths. I also can't find any permits in the area reserved for such on the tax card, so no idea when that was done.

What could have possibly caused the assessor to decide on such a downturn in value? Was it the splitting into two units?

Spouse wants to take a stroll by it on his day off, and there's not many pictures to go by. I want to call the listing agent first just to see if all systems are functioning, because I already know spouse does not want to get a 203K. From the few pictures available, peeling paint and such will mean no FHA loan possible anyhoo since banks are known for refusing to do any repairs on short sales.

Copper for any thoughts or guesses.

Link to the listing: http://www.zillow.com/homes/for_sale/34-glazier-st,-gardner,-ma-01440_rb/?fromHomePage=true&shouldFireSellPageImplicitClaimGA=false&fromHomePageTab=buy
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Nicholas
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Re: Concern over a huge drop in city assessment value

Post by Nicholas »

I would stay away from short sale. Closings are held up by a third party, other lenders with their palm out.

Here is an article on that, including a part where there are "more taxes owed". (There is a link to 11 reasons not to buy a short sale in the article)

https://www.thebalance.com/before-buyin ... le-1798232
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JRC
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Re: Concern over a huge drop in city assessment value

Post by JRC »

It's probably different everywhere, but I have as much confidence in the tax assessor's value of my home as I do Zillow's "zestimate." Maybe the current owners felt the assessed value was too high, and petitioned to have it lowered? I'm definitely no expert, but I think there are a number of reasons the assessed value could go down, without indicating something wrong with the house, itself.

1918ColonialRevival
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Re: Concern over a huge drop in city assessment value

Post by 1918ColonialRevival »

I'd be more concerned over the short sale than the drop in assessment value. A short sale usually means there are third parties involved in the transaction with much more potential to gum up the works. As for the assessed value, look at other properties in the surrounding area. A lot of towns and cities are just now starting to adjust their assessments based more on reality due to the number of complaints and requests to re-assessments they've been getting. Many places wasted no time in rubbing their mitts together when the real estate boom hit, but they've been slow to adjust for market correction.

As the previous poster stated, all an assessment is is a guess. Look at the bright side, it means lower property taxes. I wish my city assessed value would drop 38%!

I'd also stay away from FHA. As with anything that involves a bureaucracy, there will be more red tape than you want to deal with.

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Lily left the valley
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Re: Concern over a huge drop in city assessment value

Post by Lily left the valley »

Oh, I'm with everyone about the avoidance of short sales. After what we went through with 42, I want as little headaches as possible moving forward.

Nicholas, thank you for that link. I'll be showing that to spouse later as another reason that home is just not in the cards for us. I found a few when I looked into exactly what a short sale was, but yours has more points overall than the ones I found with a quick search.

JRC, that makes sense to me on many levels. It's just that the huge drop felt alarming. I noticed there were other spurts both ways before, but not one that big. I will keep your post in mind in the future when I look at price histories.

1918ColonialRevival, the home is preforeclosure. Interestingly enough, with the bank spouse uses. I did do a comparative, but did not think to check those same homes for similar drops. I had read here and there about folks having appraisal issues versus local assessments. I guess it's good then that the towns are trying to address the issues. Will keep in mind the advice about the FHA. At the rate properties keep getting snatched up by investors (and we're a slow market), if this is the norm, then eventually we might be paying all cash ourselves. :lol:
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CS in Low Hud
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Re: Concern over a huge drop in city assessment value

Post by CS in Low Hud »

No advice on the short sale... but the drop in valuation, as others indicated, could be due to the home owner filing a Tax Grievance to argue for a lower valuation, and/or a town-wide reassessment. We had both at our place.

We were successful filing the Grievance back in (I think) 2007... and then last year the town did a contentious reassessment of everyone's property. It had not been done since the 1950's. Some property valuations skyrocketed, some came down. We got lucky and landed on the "coming down" side - they sent a nice-but-clueless collage kid around with a questionnaire check-list which placed greater value on things like "Energy Efficient Replacement Windows"... and "Maintenance Free Siding"... and "Finished Basement." I shook my head and made a sad face every time he asked if I had one of those items :lol:

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Re: Concern over a huge drop in city assessment value

Post by Old house lady »

CS in Low Hud wrote:...they sent a nice-but-clueless collage kid around with a questionnaire check-list which placed greater value on things like "Energy Efficient Replacement Windows"... and "Maintenance Free Siding"... and "Finished Basement." I shook my head and made a sad face every time he asked if I had one of those items :lol:


And the Oscar goes to...

vvzz
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Re: Concern over a huge drop in city assessment value

Post by vvzz »

Maybe I'm corrupted by Boston prices, but this house looks like a steal. I really wouldn't worry about the assessed value - less taxes to pay. Also in my eyes short sale == good deal.

The house looks awesome though - with all the original corbels and unpainted woodwork inside.

arwenmark
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Re: Concern over a huge drop in city assessment value

Post by arwenmark »

Sold for 74K so the value should have come down.

Kashka-Kat
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Re: Concern over a huge drop in city assessment value

Post by Kashka-Kat »

City should be able to explain. Have no idea but sometimes cities make adjustments to get ev more in alignment with market values - though usually it goes the other way - up instead of down.

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