October 18, 2006

Home Mortage Appraisals and Appraised Home Value

When make an appraisal for a home mortgage the bias is for a higher appraised value. When engaging in a property tax appeal the bias is for finding a lower home value.

That, however, does not address the mass appraisal process that communities engage in. Mass appraisals are done cheaply. Often it is the lowest cost service that will hire college students to take the measurements and make observations. Past data is frequently rolled forward. The most expensive property on the block may be used as the point of reference. In equalities are abundant.

Consumer Reports (Nov.1992 v57 nil p.723) published that property tax records show an error rate of 40% exists in estimating property taxes.

The National Taxpayers Union ("How To Fight Property Taxes" 2004 p.1) writes that as many as 60% of all homeowners are over-assessed and not in line with their home value.

If your mortgage payment reflect a surge, it may be because your property taxes have increased. An excellent and inexpensive eBook that can guide you with the calculations you’ll need in the process can be found at http://www.housetaxax.com

According to the Appraisal Institute, problems with appraisal fraud could be addressed if lenders used only competent appraisers to begin with, and if mortgage broker and appraiser licensing standards were tightened.

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October 12, 2006

Housing Slump May Lower New Hiring

Builder, supplies, real estate connected jobs slump as housing related employment is effected. It’s no longer boom times in the construction industry. Interest rates have settled and offer a good chance to refinance at favorable interest rates.

Property tax appeals offer an excellent means to lower your tax dollars. To keep up with additions and subtractions the municipal building department missed, the mass appraiser is contracted. Mass property tax appraisers often use the most expensive property on the block to gauge properties against. Using error in judgement often results in not making location and other value adjustments. Maybe that’s why you’re over-assessed!

At the end of the day, the person doing the measuring has hundreds of measurements and calculations in his head. He probably will not even remember your home. He doesn’t have the same recall as an appraiser making an individual property appraisal.

Inaccuracies, math errors and observation made in haste and not recorded or misplaced occur frequently. Depreciation is not accounted for. For a good do it yourself property tax manual go to Property Tax Appeal Ax You might save yourself quite a few mortgage payments when you win.