View Single Post
      08-26-2014, 02:45 PM   #20
zx10guy
Brigadier General
5139
Rep
3,235
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

I'm no real estate expert. But I've purchased 3 homes and have gone through a couple of refinances of my current primary residence. First, based on my experience, any time you're dealing with a bank, I had to use the bank's appraiser. Period. There was no wiggle room on this. If I had an appraisal which was done recently enough, the bank's appraiser may or may not use this to determine the value of the home. For a refinance, the bank also may elect to do a drive by appraisal where the appraiser just looks at the house to just make a quick determination of condition and then what the neighborhood is like. A drive by costs less than a full blown appraisal.

The other appraisal which can be done is called an automated appraisal where the bank can run the property against some sort of system which generates a value based on public records and the like. Some refinances are eligible for this and I think it's more based on when the last appraisal was done on the house.

For property taxes, it is my experience in my area, the county and state does not look at any appraisals done for sales or refinancing. I know my official property value as stated by my local government is no where near what the market value is. There is typically a lag between what the local government feels your property is worth versus market value. Sometimes this isn't the case. Such as during the housing crash. I was paying more on property taxes as my local government had my current house value higher than what the market was. This is due to when they did the assessment on my house. Once the assessment was done, it locks in the value they set for 3 years. My local government does do a phased/stepped approach in when you ultimately get hit with the full taxes of this assessment. The only option you have to contest this is to hire your own appraiser. But many times, the local government will likely not rule in your favor.

To me the appraisal industry is a bunch of scam artists and is legalized extortion. This opinion has been formed through my personal experience with appraisers and backed by others in the real estate business.

Anyways, congratulations on your home purchase.
Appreciate 0