September 30, 2007

Housing Crash consequence #548: Appraisals aren't dropping as fast as real prices



Since home comps and property taxes are based on the grossly inflated mortgage-fraud-and-failed-flipper-fed appraisals, won't it be funny when agreed sales prices are dramatically below appraised values, and homedebtors demand lower property tax valuations?


We're seeing it a lot now. Appraisals are coming in higher than the contract," said Patrice Yamato, president of Plaza Mortgage Group in Jacksonville, Fla. It's a reversal of the pattern during the housing boom years, when appraisals often came in at or occasionally below the contract price.

15 comments:

Anonymous said...

Yes, but in response to lower property tax appraisals, municipalities will just jack up the rates to insure the same revenue stream the because use to even though it was a short term anomally, it is now the standard and just like home sellers it is what thye will expect and demand, but unlike homesellers the local gov't can just game the system and get it!!

Anonymous said...

I haven't seen this yet. At this point people are still realizing they are upside down in their home/condo. By the way I missed the "housing crash consequence #547"

Paul E. Math said...

This is hilarious. I was just surfing craigslist indiana to see how cheap homes are getting when I came across this fsbo tagline: "The Price is Steady Dropping on this Condo!!!"

p://tinyurl.com/33hjrs

Better buy now before the price gets even... lower??

Am I really the same species as this person? Seriously?? Naw. C'mon. There's no way. For real?

what do i know said...

Appraisers must keep their jobs.....they just haven't kept up with the price drops either....or is it just denial???

Anonymous said...

Soon 1 ounce of gold will buy a house!

Anonymous said...

my home town county property tax needs to be raised 45 percent this year.. so says the budget people..or services must be cut...no mention of the average 10 percent yearly increases or the just completed years of 30 percent increases, or that these numbers are not calculated in the bogus inflation numbers of the fed..in their atempt and success at raping sheeple....

Anonymous said...

the price is **steady** dropping? sounds like an immigrant who decided to play r/e investor.

Fuck him and his momma.

Anonymous said...

Thankyou GOP

Anonymous said...

Been seeing this phnomenon since June. At first we thought that a few buyers were getting good deals but now we are seeing appraisals that are on average 10% higher than the purchase price. The comps appraisers are using are new too. Typically a month or two old which would indicate that the market has really tanked in just the last couple of months. This is exactly the reverse of 2003-2005 when appraisals were "struggling" to keep up with higher purchase prices. Higher appraisals don't really mean much since the lender will only finance up to the lower of the purchase price or the appraisal. I would hate to see an updated appraisal in, oh say, 6 months or so. :)

Anonymous said...

I gotsta eats...

Anonymous said...

This is an EXCELLENT point. I will celebrate when local tax rolls implode as appriased values decline by anywhere from 20-40% nationally. No more bullshit projects for the city, no more take home cars for the cops, and they will finally shut the hell up about spending more money on failing schools. Oh, and less money for the criminal politicians.

Anonymous said...

won't it be funny when agreed sales prices are dramatically below appraised values, and homedebtors demand lower property tax valuations?
--------------------------------------

Yep. I saw it happen in the bay area in the early 90s.

Anonymous said...

I live in a decent house, no mortgage, bought for cash ten years back. I only pay property taxes and insurance. Property taxes have been going up so fast due to the cheap credit driven mortgage inasnity that this site so well exposed (I consider this site a public service) that I welcome the three houses on my block going into foreclosure. These houses were built in the 1980's or real wood and brick, and they are located in a desireable area of town, so they will revert to the mean as to price on the back sale and I now have several reasonable trasnactions to use for my next appeal with the idiots at the county property tax office. So, there is a good side to the local house equity junkies that got caught swimming naked when the tide went out. I can use their defalted prices to go to court to fight the ongoing pertilance that really destroys the honest ethical home owner. By Owner, I really mean OWNER, like no mortgage, no debts, who only uses the local bank to cash their paycheck, pays in cash for food and clothes, and lives within their budget. (Hint: If you want to be free, live on the cash you have, budget spending, and do without until you can pay for it at the time of purchase. Your grand parents understood this. You do not need an MBA. You need character and discipline.

Anonymous said...

Paul at September 30, 2007 4:10 PM

Nice one, LOL! The ad also says willing to negotiate the price if you are willing to buy. Is it me or why else would I negotiate the price? For fun? That's pretty much the association with real estate these days.

...and yes, I believe we are all the same species as the seller. Hurry and buy before the price gets lower.

Anonymous said...

I think banks and the public in general put to much weight on the "appraised" value. People dont understand that 80%+ of the appraisers out there practicing are either totally incompetent or just fraudsters. No matter what the closed sales say, the ACTIVE listings tell the story. As a professional appraiser, in a declining market with bloated inventory, I let the actives tell me how much to adjust for negative time. Understand, most appraisers are hacks, especially in So Cal.