Home Buying in Red Hook>Question Details

Kc, Home Buyer in Red Hook, NY

we were just about to go into contract on a beautiful 3000sqft house in red hook with 50 acres. it was

Asked by Kc, Red Hook, NY Tue May 12, 2009

asccesed at 550000 and now our motgage appraisers are telling us it is worth 415,000 NO WHERE NEAR WERE IT SHOULD BE HOW DO WE GET AROUND THIS

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The assessed value and the appraised value are two different things. The assessed value is what the town uses to determine your taxes. In "theory" it should represent the value of the home. It should never be used to determine market value. It's great to have a low assessed value as your taxes are lower.

I would venture to guess that most homes are over assessed currently. Market prices dropped faster than assessments. My assessment went down last year for my home. Not enough. I grieved my assessment and had it lowered an additional $110,000. This is going to reduce my taxes by thousands every year. This is something every homeowner should think about.

In your case, if the appraisesd value is less then you agreed to pay then renegotiate. If you haven't signed contracts you can renegotiate or walk away from the deal.

Web Reference: http://www.nyhomeseller.com
0 votes Thank Flag Link Thu Sep 2, 2010
I would absolutely get a second opinion on the Appraisal. Also, your agent should have provided comps and should be fighting this for you. Often banks are bringing in appraisers from different areas other than Red Hook and who do not know the area, therefore appraisals are not accurate.
0 votes Thank Flag Link Mon Aug 9, 2010
No other comment other than I'm amazed at my spelling of assessed as "accessed" twice, at least I got assessment right. Wow.
0 votes Thank Flag Link Fri May 15, 2009
You might be able to get a second appraisal, if you are willing to spend the money and the bank agrees, but it might also be throwing money away. The bank will also have another appraiser review the first appraisal if you think it is in error. Is the seller holding his ground on the price? How close was the accepted offer to the low appraisal? Would it be possible to subdivide some of the acreage off and have the owner hold paper on the land parcel? The bank may consider the bulk of the extra raw land as not adding a significant amount of value to the property so that the appraisal without the extra 30-40 acres might come in close to what it was before, while the owner might allow you to purchase the remaining acreage at the balance of your original accepted offer. Just a possibility...
0 votes Thank Flag Link Thu May 14, 2009
I'd guess the appraiser's value is MUCH closer to the real value than the accessed value. When was it last accessed? Nearly half of the listings I see in our areas in westchester with nearly all of them in Briarcliff Manor have the statement "Taxes can be grieved" or "Taxes being grieved" in them. Why? Because the assessments are way out of whack with reality.

That said, 3000 sq ft and 50 acres sounds like a steal at 415k, and a deal at 550k, although dutchess country is pretty far up there, so maybe not. When your realtor ran comps, (although with that much land, there may not be too many), what price area did they come up with?
0 votes Thank Flag Link Wed May 13, 2009
I am going to assume you were working with a Buyers Agent and an Attorney. As this is a legal question, these are the ONLY two people who can answer it for you as the Real Estate Pro's on Trulia do not know the specifics of the deal, the sellers position, your position or what your contracts state.
0 votes Thank Flag Link Wed May 13, 2009
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