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So someone knows the answer to this: How do they come up with "value" of a home...


Mikelly

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Jon,

Actually, that is what I thought, but when we completed our addition, they did not levy taxes on the new appraised value, but rather just on a portion of the new addition (not sure how that works), but it was definitely assessed on far less than the full appraised value.

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Hmm, you could be right Tim. I'm trying to remember how that worked, and I'm thinking maybe its when you SELL the house that the new buyer has to pay taxes on the appraised value.

 

Yup.....one of the main reasons we decided to do an addition instead of buy another place. Up to the point of the addition, we were only paying taxes on $280k......didn't want to bump that up to paying taxes on $800-900k :icon52:

That...and selling and buying a house means throwing away about $60k on realtor commissions!! :icon52::twak::toetap05:

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Yeah, When you go for a bank appraisal the appraiser knows what you are trying to borrow. They rarely appraise it for much more than that. I have had appraisers give an appraisal from just a drive by look at the house I was buying. When I asked the appraiser why the value wasn't higher he said that since I was only borrowing $35,000 he didn't need to go inside the house to come up with an appraisal to make the bank happy. The appraisal he gave was $50,000. When the house got flooded a year later with no major modifications the appraisal showed a value of $90,000 in preflood state.

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You 'coasters' scare me when you talk about what real estate is going for. I've got a 2250 sq ft home on a fully landscaped lot that is paid for. Looks like I'll be staying in Texas because it would put me back into house payments on the coasts. Then there is my Aunt who owns a home in Los Angeles that cost her $17,000 in 1951!

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My parents bought their home in 1986 for $125,000 here in the Bay Area. Its 1300 sq ft with three bedrooms (tiny master bedroom), and two baths. With the fence falling over, in need of a repaint, etc... the home just appraised for $615,000. Its ridiculous. Anywhere else this home wouldn't be worth much at all.

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