Real estate value ??

skyhighZJ

skyhighZJ

Gov retirement < needs to live
Joined
May 31, 2012
Location
Aberdeen, NC.
I’m looking at houses in anticipation of moving back to North Carolina to finish out my Army career and hopefully be the place I retire. I found a place that the wife and I love in Aberdeen area that has a house, 8 acres, a small barn and fully fenced pasture area. Perfect cause that means I don’t have to build it (just add on or slight modifications. The last time the property sold in late 2015 it went for 170k now they’re listing it at 264k I asked why and the realtor came back with a list of stuff done to the property but most of the big ticket stuff was the barn, fencing, and related. Only one big item was added to the house and that was a “crawl space encasement system with dehumidifier and sump pump. I’ll admit I have no clue what one costs so maybe it is justified to add 80 some thousand to the asking price. Do the improvements to the barn and such really affect the overall tax value of the property or are they trying to sell at a really pumped up price cause they just added up the receipts ? I hope this makes sense enough to get a response
 
We are in a booming house market. Appreciation is a real thing.

Its simply worth more now than it was 2-3 years ago, even with NOTHING done to it.
 
Meh, I just found it. If it was in RDU or Charlotte maybe the price increase could be there, but I don't see that many "improvements". Real estate in guilford/alamance co has not had that kind of appreciation. That's not much of a house to me for the money. Like all things it's worth what someone will pay. You are gonna need to do some research yourself, or get a realtor to know for sure what it's worth.
 
Crawlspace encapsulation costs a few grand, depending on the house size and material quality.

Talk to a real estate agent, that's the only way to know. It almost sounds like they've taken the cost of the house and added all the money that they spent on the other stuff, kind of like modifying a vehicle and then selling it for the total that you have in parts, labor, etc.
But, with 8 acres the land value could have just crept up a bit as well.
 
I'd pass. It's not worth anywhere near what they're asking, and it's an awfully skinny lot. If I'm buying a house on six or seven or whatever acres, I want them to be "around" the house.
 
rockmafia said:
Meh, I just found it. If it was in RDU or Charlotte maybe the price increase could be there, but I don't see that many "improvements". Real estate in guilford/alamance co has not had that kind of appreciation. That's not much of a house to me for the money. Like all things it's worth what someone will pay. You are gonna need to do some research yourself, or get a realtor to know for sure what it's worth.
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It’s not a big house but it’s all I want because it’s just the wife and I. The fencing and everything is setup for the animals we already have so it’s one less thing. If it’s WORTH the asking price and is within the market I’m not afraid to pay it at all. What I don’t want is the adding up of receipts and it being a perceived value as stated above like a mall crawler that the quadratet catalog threw up all over.
 
braxton357 said:
We are back in the 07 silly price market right now, I wouldn't be buying anything.
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Headed for the 08 crash??


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braxton357 said:
We are back in the 07 silly price market right now, I wouldn't be buying anything.
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Agreed.
Told an agent the same thing last week.
 
Aberdeen is about 2hrs southeast from me...so not sure of the market, but I know my area (45 minutes north of Charlotte) has been smoking the last 4-5 years. I’ve bought and sold 3 times in the area in the last 5 years and twice out at the coast. The house I bought in ‘14 was at $164k, sold it a year later at $180k. Just sold again a month ago at $202k. The house I bought 11 months ago was right at $350k...and according to my realtor that sends monthly market trend analyses, its up $20k.

Houses that were $85 sq/ft (which was a valuation for a nice middle class neighborhood) 5 years ago, are costing $100-105 sq/ft. Then I figure $10k/acre.
 
Aberdeen has been increasing in land/house value every year for as long as I can remember. Thanks to Bragg. It’s just far enough away from Fayetteville’s craziness but close enough to commute/etc.
 
chromerunner said:
Aberdeen has been increasing in land/house value every year for as long as I can remember. Thanks to Bragg. It’s just far enough away from Fayetteville’s craziness but close enough to commute/etc.
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This. I loved living in the area when I was stationed there before. Gotta do it right this time though cause it’s probably going to be our forever home.
 
Aberdeen (Aberdump) is about 30 minutes South of me. I am right up US-1 in Sanford.

Things are starting to jump here....new home construction was dead, now I'm seeing new stuff popping up all over. Raleigh has had a hot market for a while, we are finally starting to see it down here. Most of the growth here is commuters to either Raleigh or Ft. Bragg. 40% of apartment rentals here in Sanford are to military families. Most of the growth in Moore County (Southern Pines/Aberdeen) is either military or retirees. In Moore county, if you add the word "horse" in front of "farm", you can double the price.

Great hospital in Moore County. Schools are good. Lots of good eating down that way. Easy jump up to Raleigh for big-city stuff (most folks I know down that way avoid going into F'ville at all costs). Lowe's hardware down there sucks....not as big as other stores...found they don't stock a lot of things that our local store does. Belk Building Supply is just North of town, worth the trip for lumber, etc.
 
Was in touch with the realtor yesterday and have a list of questions and things to verify. He is checking on the price jump and also to see if the permits were pulled for any of the stated improvements (His words)? According to him when the permit is pulled and then signed off upon completion it goes to the tax office who in turn sends someone to inspect for adjustment of the tax value. Is this correct? How do you account for other (no permit required) property improvements? Does having your house appraised by a company for a sale value equal the tax value as assessed by the tax office and if it doesn’t what does that mean?
 
skyhighZJ said:
How do you account for other (no permit required) property improvements? Does having your house appraised by a company for a sale value equal the tax value as assessed by the tax office and if it doesn’t what does that mean?
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Property improvements with no permits required like paint for aesthetics...don’t really add any value to the property at all. But will probably make it more presentable and appealing...more of a psychological game for prospective buyers. Why you’ll usually hear realtors advise painting over any extreme wall colors with neutrals when you look to sell. Something like a fence, your realtor should know what the going rate is for the area. Sometimes represented as a percentage increase of the home value...but usually shown as $.xx return for every dollar spent on the fence/or whatever it is. If it was a $10,000 fence, maybe fences in the area only bring .15 on the dollar at resale...so I would expect the fence to reflect as a $1500 improvement.

As for appraisals...it’s always been explained to me that there are 3 main types. 1) the sellers appraisal...they can use anyone and everyone they want and will usually be the highest/most lenient appraisal. 2) An equity appraisal, when you’re looking to do home improvements and need a loan based on current home value while projecting Home value after those upgrades have been made. It’s dumb money to loan $50k on a probable $10k return. These are more middle of the road and more reflective of tax value from what I’ve seen. 3) then you have buyers appraisal while you’re doing your due diligence. These are the most strict. They establish what the bank will mortgage. The bank doesn’t want to get over extended on a bad house. So if the appraisal comes back lower than the asking price...you either have to negotiate with the seller, cough up the cash out of pocket, or find a different house.

As far as tax valuation in regards to appraisals, I doubt you’ll ever find a house where the two are the same...but should be roughly +/- 5-10% of eachother. And if they’re not, it’ll eventually catch up to you, or you’ll wanna take the steps to lower the valuation.
 
@UTfball68 makes sense and thank you for the clarification. I have lived in lots of houses but never bought cause I knew I wouldn’t stay very long in one place and didn’t want the ass pain of buying/selling/buying etc. every 2-3 years or whenever Uncle Sam saw fit to move me.
 
No problem...I’m sure someone can give you more technical answers. But that’s how I understand and how I had it dumbed down for me when I was asking the same questions. And I did the opposite...don’t plan on moving, but have 5 times in the last 5 years, so I’ve been on your side of things a few times recently.
 
skyhighZJ said:
@shawn is there a site people can go to find such info or is it a perk of being you/your job?
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That's what was on Zillow. Tax valuations are public record, you just have to find the county or city website where they're listed.
 
shawn said:
That's what was on Zillow. Tax valuations are public record, you just have to find the county or city website where they're listed.
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Well no shit it is. I guess I wasn’t logged in before so didn’t show it? Hell maybe I just missed it. I haven’t been using the app too long so still learning its ins and outs. Thank you
 
skyhighZJ said:
Well no shit it is. I guess I wasn’t logged in before so didn’t show it? Hell maybe I just missed it. I haven’t been using the app too long so still learning its ins and outs. Thank you
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It's rarely a good indicator of actual market value, though. Some counties will apply a flat percentage reduction to the assessed value and list that as the tax value, then apply a mill levy to that. Others base the mill levy off the assessed value. In either case, they're only updating the valuation every 10 years or so.
 
So I know you said you didn’t like the property layout itself but what’s the correlation between a 97k tax value and a 264k asking price. How is it such a huge difference? Is it like was stated above and, if this is the sellers appraised value, if I were to have it appraised for me would that number be a lot lower? I guess what I mean is, does a bank look at such a large difference in determining the mortgage value to be loaned?
 
The seller doesn't need an appraisal. He is free to ask whatever he wants for the house. Typically if a real estate agent is involved they will have the price about right as all of them brag about their average days to sell and a high price would prolong the sell.

The only "appraisal" in a purchase is by the buyers bank. There are federal laws for how that price is determined. Once that is determined that is the only number the bank cares about.

Tax value has zero to do with sales price. Tax value is a number the county asigns for tax calculations.

Depending on county they can be nearly identical or totally irrelevant.

I've seen tax values 10x actual market value and vice versa.
 
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