A 47% Difference
The house is paid-off. An equity line has been in place for many years and is currently based on the appraised value three years ago. Wachovia notifies the customer the house is worth about half its appraised value.
Wachovia has reason to believe that the equity in the property securing your line of credit has decreased 50 percent because of the decline in the property value. Originally, the information we used to grant your line of credit showed the property value was $320,000. Our current information indicates the property value is $161,000. In the interest of protecting you and your credit, effective as of the date of this letter, we are reducing your total line of credit.
The Henry County tax assessor determined the current value of the home to be only three (3%) percent less than last year. Either the folks who actually view the market value and assign a credit line are wrong, or the tax assessor is gouging!
Another similar situation regards another home in Henry County. After filing the Taxpayer’s Return of Real Property, supported by three current market ratings for similar properties, this homeowner asked for a fifteen (15%) percent reduction in the assessed value. The actual assessment was mailed showing a seven (7%) reduction in assessment. Instead of the requested $280,000 assessment, the property came in at $305,000.
The second example house has a mortgage and equity line that far exceeds any realistic price in today’s housing market. But the tax assessment is lower than the actual cost and the most recent appraisal.
The question arises about the methods used by the Henry tax assessor. In fact both houses are “worth” less in the fair market, and many comparable properties stand empty and have little hope of sale in the coming year.
We must remember that the tax revenue generated by a $300,000 house nearly pays for associated county services, while a lower cost house does not. It is interesting that neither house was assessed below the magic threshold of $300,000 regardless of current market ratings NOR the findings by the actual credit lender.
Comments
My mom recently had a similar situation with her house that she is trying to sell in Clayton County. The County appraised it at 122k, a buyer's lender only appraised it at 99k. My mom called the County and the County assessor said the county assessment was right because the lender was trying to take advantage of Federal Bailout money by appraisnig the house so low.
Anyone heard of this before?
Posted by: Koz | June 29, 2009 08:59 AM
Koz,
Sounds fishy. I don't understand 'taking advantage of bailout money' to appraise low. If there is free money out there, why not appraise higher?
Posted by: Larry Stanley | June 29, 2009 09:30 AM
Very well researched Mr. Stanley and very accurate as applied to Henry County.
The Fair Market Value of a piece of property is this... The value or price a willing and informed buyer will pay to a willing and informed seller under USUAL and ORDINARY CIRCUMSTANCES. Neither of those two conditions apply in Henry County today nor for the past 24 to 30 months.
Fair Market Value will be the highest price a property will secure on the open market given a reasonable amount of time to find a knowledgeable buyer to pay that Fair Market Price.
In Henry County the appraiser and the boards that set the budgets for the county seem to think that ..
A willing seller is someone who is trying to sell a house they paid 189K for two years ago for 120K.
A willing seller is someone who was terminate from a fortune 500 company after 15 years of service when they reported to work on Monday.
A willing seller is someone who is being told by his company to transfer of terminate... without company assistance with the expense.
A willing seller is someone due to circumstances beyond their control can no longer make their house payment and is facing bankruptcy.
A willing seller is someone who because of their desire to want it know which they see government doing everyday, bought more than he could pay for. Again much like governments.
Unfortunately we Realtors@ of Henry County know the value of property much better than do the appraisers office and there in lies .... boy that was a poor choice of a word... but that is the problem.
We all know that the property values have dropped probably at least 40% yet the county continues to tell everyone that it will rebound and are spending OUR money just like it will.
Tell that to the bank,mortgage company or whoever holds your past due house note....
If we are ever going to recover as a county then drastic cuts in capitol improvements,departments,personnel,department HEADS, parks and yes SERVICES will have to be made.
If the families of this county and I direct this to the Board of Commissioners and the Board of Education because you are the bodies that set the budgets.... If the families of this county implode financially and cease to exist because of moving,divorce or what ever the reason.
If the financial burden become to heavy because of the tax policies and budget burden your fiscal mismanagement and at times frivolous spending then what good is all the grand government programs?
They won't be funded and there will be no one to enjoy them other than those who's names will be emblazoned on those little bronze plaques.
The time now CUT THE BUDGET and lower the tax not just hold it LOWER it Folks the ship is sinking and it HAS to be lightened....
Attend the July 4th F.A.T. Rally at the Henry County Administration Building 6 pm and learn how to lighten the load ..
Don Henderson
Posted by: Don Henderson | June 29, 2009 10:50 AM
Excellent work Mr. Stanley on this subject that is affecting many in our area.
And Don you are correct in your assessment sir.
Posted by: The Doctor | June 29, 2009 07:22 PM