Porch Light Appraisal, Inc.

Are your property taxes through the roof?

2019-03-22

Robert and Bonnie Peterson* were shocked when they received the assessed property value of their Brush Prairie WA home – and the corresponding tax bill. They couldn’t imagine why the difference was so great in such a short period of time – from one year to the next. Believing the amount was a mistake, or at least unreasonably high, they had their home professionally appraised. Sure enough, the appraisal came in markedly below the assessment. The Petersons used the appraisal to challenge their property taxes. After contacting the county assessor’s office and requesting a review of the valuation, they were pleased to find that a new assessed value was determined. The property taxes they owed subsequently fell by more than $2,000.

Assessments

Municipalities rely on property assessments to structure their tax bases. If you were surprised to find what you owed in property taxes this year, you’re not alone. The assessed value of a property usually can’t keep up with the often rapid fluctuation of the real estate market, in part because assessments are generally conducted in cycles of 3-5 years. A lot can happen in that period of time. The peaks and valleys of the average real estate market can be challenging to monitor.

Additionally, tax assessors are typically not real estate appraisers. Property tax assessors conducting periodic assessments use mass appraisal techniques to evaluate homes for value according to a specific set of algorithms. After the assessment is completed, taxes are levied against each home according to its assessed value. A recent decline in home value could result in the homeowner paying more in property taxes than is fair.

Appraisals

By contrast, appraised values are determined at a distinct point in time and are performed by licensed or certified real estate appraisers. A home appraisal typically reflects market value. For mortgage related transactions, appraisals exist to protect the lender, ensuring that the home buyers aren’t borrowing more than the house is worth. This is an important number, especially if the loan defaults.

Unlike assessments, appraisals take into account the condition of the home, any improvements made to the home, the school district, the view, positive or adverse location, and other intangible but important considerations.

It’s quite common for assessed values and appraised (market) values to be different.

Current Real Estate Climate

In our current real estate climate, it’s also common for assessed values to be less than accurate. This could mean the difference of hundreds --or even thousands-- of dollars on your tax bill. If the assessed value of your home seems high, call Porch Light Appraisal at 360-474-4147 to see if you’re right.

About the author:

Steven P. Gray, SRA, IFA, AGA, MNAA

Steven P. Gray is a Washington and Oregon State Certified home appraiser and owner of Porch Light Appraisal. He’s been appraising homes in Washington and Oregon for more than 13 years. Steven can be reached at 360-474-4147 or E-mail: info@porchlightappraisal.com. Web: www.porchlightappraisal.com

*names and details changed to protect homeowner privacy

Appraiser presentation at REVIN meeting in Vancouver

2019-02-28

On Tuesday this week I spoke to a group of around 50 real estate agents, investors, tradespeople, loan originators, etc, at the bi-weekly REVIN meeting in Vancouver WA. We discussed multiple topics pertaining to home appraisals including how to search for comparable properties, the difference between FHA and Conventional loan appraisals, the do's and don'ts when preparing a home for an appraisal, as well as some fun home photos. If you 'Like" my Facebook page you'll get treated to some occasional funny photos that I and other home appraisers across the United States take of some crazy things both inside and outside houses. You'll find my company Facebook page here: https://www.facebook.com/porchlightappraisal

Why price per square foot is a poor indicator of value

2019-02-14

Did you see my article in The Columbian newspaper? "Why price per square foot is a poor indicator of home value."

Coming I the next Home Book, an article on challenging your property tax assessment.

5 YEARS!

2013-11-18

In this month of thanks, I have to just say how thankful I am for all my past and current clients. Without you I wouldn't have made it. This month marks Next Appraisal's 5 year anniversary. Only 15 more until retirement. :-)

THANK YOU!

FOLLOW ME ON TWITTER!

2013-01-04

I don't blog very much (as you can tell), but I do tweet!

Follow me on Twitter. https://twitter.com/nextappraisal

Steven Gray conducts residential real estate appraisals in Alameda County and Contra Costa county.

Our new address: 1271 Washington Ave. #128; San Leandro, CA 94577

COMPUTERIZED APPRAISALS, OTHERWISE KNOWN AS "AVM'S"

2011-04-01

An article from the Wall Street Journal discussing what living breathing appraisers already know: Computerized appraisals (i.e. AVM's) are WRONG more often than they are right. Zillow.com is terrible in most neighborhoods.

Nothing can take the place of a real person, with the knowledge and experience of the neighborhood and market trends, acting under no pressure, to appraise real property.

Here's the article:

http://online.wsj.com/article/SB20001424052970204204004576049974087536438.html

BTW, my New Year's resolution is to blog more. :-o

Next Appraisal / Steven Gray appraises residential properties in the Contra Costa and Alameda county cities of Richmond, San Pablo, El Cerrito, Albany, Hercules, Pinole, Walnut Creek, Oakland, Union City, El Sobrante, San Leandro, San Lorenzo, Hayward & more.

I'M NOW ON TWITTER!

2011-03-23

Next Appraisal is now on Twitter!

WELCOMING A NEW TEAMMATE ABOARD THE S.S.NEXTAPPRAISAL!

2010-10-18

We wanted to announce and warmly greet the newest teammate to Next Appraisal, Celeste Lee-Wong. Celeste will be working as a part-time typist and data entry person for the near future. Celeste worked as an appraiser trainee a few years ago but suffered the loss of her position when the real estate business fell through the floor and unfortunately was not able to get her appraiser license. She remains passionate about appraising and looks forward to slowly working her way back into this awesome profession.

Welcome Celeste! We hope that we learn a great deal from each other! :-)

HVCC IS DEAD! LONG LIVE THE HVCC!

2010-10-17

So, the business agreement (not a law) that was known as the Home Valuation Code of Conduct is sunsetting this month.

In response to this sunsetting, Fannie Mae has developed their own appraiser independence requirements to take it's place and is essentially the same as the HVCC. The new requirements are clearer to read and understand. The rules still prohibit anyone who receives commission from a loan from ordering an appraisal. It does not prohibit mortgage company staff from ordering appraisals as long as there are rules/firewall in place that sperate those originating loans from those ordering appraisals.

Here's the link to the new Fannie Mae requirements.

HTTPS://WWW.EFANNIEMAE.COM/SF/GUIDES/SSG/RELATEDSELLINGINFO/APPCODE/PDF/AIR.PDF

Next Appraisal is a residential appraisal company that services Contra Costa and Alameda counties.

THE FINAL HVCC REPORT RELEASED!

2008-12-24

The final draft of the HVCC has been released. It's all good from what I can decipher.

Read it for yourself here:

HTTP://WWW.FREDDIEMAC.COM/SINGLEFAMILY/PDF/122308_VALUATIONCODEOFCONDUCT.PDF