Home Selling in Pines Point>Question Details

Help, Other/Just Looking in Pines Point, Springf...

if my propety is valued at 128,000. by the city, how much will the bank finance me. is that the price i can use to by someone out.?

Asked by Help, Pines Point, Springfield, MA Sun Nov 29, 2009

Help the community by answering this question:


Forget property assessment. It has nothing to do with the value of the property. It has nothing to do with how much a lender will lend on the property. Nothing. Nada. Zip.

Reason: Property assessments are broad ranges done by counties and cities for tax purposes. Where I live (Fairfax County, Virginia) the county considers an ACCURATE tax assessment to be something within the low 90% range of actual value. So a property assessed at $100,000 might be worth as little as $92,000 or as much as $108,000, and still be considered accurate by the county. And that's pretty typical across the country. You tell me: Would you like to pay $100,000 for a property worth only $92,000? No, I didn't think so.

How much will the bank finance? It depends. Check with a good mortgage broker. Right now, the answer is anywhere from 80% to 100% of the fair market value of the home. Eighty percent for most typical, standard mortgages. 96.5% for FHA loans. And 100% for VA loans.

If you're considering buying someone out, there are two ways to establish value. First, you can have a Realtor do a CMA (a comparative market analysis), comparing that property to others that have recently sold. That's free. Or you can pay an appraiser--maybe $300 or $400--to do an appraisal.

One thing to keep in mind is that if you're going to be applying somewhere for a mortgage, then you'll have to pay for an appraisal anyway. The lender will require it. So I wouldn't really encourage you to pay for two appraisals. Best route, if you and the seller are comfortable with it, is to have a Realtor do a CMA on the property to establish value. However, the seller may ask for a formal appraisal. If so, that's fine. What you need is a reliable number you're both comfortable with.

Hope that helps.
2 votes Thank Flag Link Sun Nov 29, 2009
Don Tepper, Real Estate Pro in Burke, VA
There are different types of values:
Insured value - how much the insurance company thinks it will cost to replace your home.
note - most homeowners are underunsured.
Assessor's value - changes at point of sale or periodically - in LA County every three years properties are re-assessed. The assessor wants conservative values so the values (and therefore taxes) do not fluctuate too much.
Market value - how much someone would be willing to pay for your property
Appraised value - based on the values of comparable homes that have closed escrow in the last three to six months - so those values tend to follow behind market trends. If the values are going up, then the appraised value will likely be a little low. If values are going down, a little high.

The amount of loan is also based on your personal situation - debt, earnings, FICO, etc. Talk with a lender.
1 vote Thank Flag Link Sun Nov 29, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
Things have changed over the past few years.

When we had a real estate market going up it was common for the town tax bill to be under the selling price. Now we have real estate dropping. Do not be surprised if the taxed value is above the selling price.

Most towns (none?) do not have a re-evaluation every year or 6 months as it is very expensive to do. It could be every 5 or 10 years. A lot can happen in that time.
0 votes Thank Flag Link Sat Dec 5, 2009
Assessed value and actual value are two entirely separate numbers. As an example, there are properties in Boston that are assessed for 10+ times less than their actual value. I would recommend having an appraiser come to your home to give you the appraised value. You could also consult with a Realtor to get the market value, or what your home would potentially sell for in the open market.
0 votes Thank Flag Link Fri Dec 4, 2009
No this amount is not market value. you need a true value market appraisal. Also as a divorce specialist, I always tell the parties to have a home inspection for any and all issues, roof etc. Reason: Market value does not equal true value if there are repairs, roof, plumbing issues etc. You take the market value, and subtract the home inspection issues, estimated by a PROFESSIONAL and then you are left with true value.
0 votes Thank Flag Link Mon Nov 30, 2009
Regardless of what state you live in (or town) assesseded value by the town is only for tax purposes.

Current Market Value(CMA) is what determines the value of your property for sale or refinance.
A bank appraisal is very similar to a CMA except yhe licensed appraisor charges you for the service. CMA's are done by Realtors at NO fee.

Good luck.
0 votes Thank Flag Link Mon Nov 30, 2009

I'd be glad to talk with you further about this topic. Please give me a call. 413-248-7653

Carrie Polci
Keller Williams Realty
0 votes Thank Flag Link Sun Nov 29, 2009
Are you referring to the assessed value? This assessed value does not reflect what the property is worth.

When you are saying buy someone out, can you elaborate this? You own a property and want to pull a home equity line of credit from it?

Sean Dawes
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Sun Nov 29, 2009
The City assessment has nothing to do with the current market value of the home. How much the bank will lend is established by having a professional appraisal done. If you plan on buying some one out you should either split the cost of having an appraisal done or both have your own appraisal done and go from there.
0 votes Thank Flag Link Sun Nov 29, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer