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PhenomeNarc t1_ja94381 wrote

I'm working with two realtors at the moment. They keep sending me homes that were assessed at 350k to 400k.

The owners want, typically, 100k more than that.

This market is outright bullshit.

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chucktownbtown t1_ja9hbxs wrote

Bank assessments or city assessments? City assessments are very typically below market sale rate (which is what bank assessments look at).

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Illustrious-Nose3100 t1_ja9hhlh wrote

It’s crazy. I was looking at a house all the way out in Medway. Nice little two bedroom. They want $414k, okay fine. Then I looked at the price history - the house was purchased for half that in 2019.

My income has gone up a little since 2019 but not enough to keep with with these prices.

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whoeve t1_jadj0cg wrote

Looking at price history practically always sours me on buying a house. I love paying a 40% markup just because I'm buying now instead of a few years ago.

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Illustrious-Nose3100 t1_jadlxak wrote

Yep. That’s exactly how I feel. I made 20k less 3-4 years ago but, honestly, I was in a better position to buy a home than I am now… just wasn’t ready to buy then.

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itsonlyastrongbuzz t1_ja9jd8r wrote

This is slightly extreme but the premise isn’t uncommon.

If you bought a $500,000 house a few years ago you’d prefer the city thinks it’s only worth $450,000 because that’s what you’ll be taxed on, but you’d like to think the value is increasing and you could sell it for $550,000 tomorrow.

The city’s assessment is pretty much always less than sales comps.

One of Trumps lawsuits is based on an elaborate scheme of basically this very thing.

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kjmass1 t1_jaa9dqn wrote

Trump was somehow allowed to set his own assessments- city does that for us.

Low for taxes, high for sales.

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itsonlyastrongbuzz t1_jac4ler wrote

IIRC the basis of the fraud case is:

In his attempt to buy the Buffalo Bills, he provide the NFL a list of assets and their declared value. I’ve never bought an NFL team and don’t know who’s value you’re supposed to use but I’m sure it’s not common to use municipal property assessments.

The trouble is, in filing his taxes, he provided an identical list of assets, but the value he declared to the United States Government varied greatly from the value he submitted to the NFL.

It’s a game everyone plays to some degree but none quite as brazen as Trump.

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bobby_j_canada t1_ja9eze6 wrote

That's mostly about city and county assessors trying to avoid getting yelled at by their constituents. All the political incentives are in place for towns to under-assess properties if they can get away with it.

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ferulic t1_jab830l wrote

Housing is looked at as a commodity now and not just by real estate investors anymore, everyone is realizing it's a safe place to invest and it's hedge against inflation. You can leverage someone else's money(banks) to buy something of full value in cash you do not currently have, can't do that with anything else. The monthly mortgage payment in 2023 money is going to be the same in 2035 except it's going to feel like a lot less after another decade plus of inflation. It sucks for regular people just trying to get a place to live where they want to live and work. Big businesses are renting in residential areas, Airbnb is widely used now in neighborhoods. Housing has fundamentally changed and many are predicting that individuals won't be able to buy property in the near future. Also there won't be another crash like 07-08 banks are making damn sure your qualified for the loans they give out, they aren't going to get caught holding the bag again, notice any foreclosures lately? Me either. This is the exact same thing I heard in 2013 guess what there are many many ways to buy besides conventional, if you want to own a home stop waiting for market corrections or interest rates to come down, find a deal that works for you and take it. If you can't shop on the MLS then don't there's other ways, I don't shop at whole foods but I still eat.

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