HELOC Appraisal Issue - They say I have 1 Bathroom, but I have 2

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Gorillaz_sl

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So I applied for a HELOC, and the "appraiser" gives them a price of about 160k (15-30k below market value) based on comps in my neighborhood.

It seems that this is in large part due to my tax assessment showing only one bathroom. The houses which were built at the same time and in the same style as mine with 3br/2b are going for more like 175-190k.

I knew they were probably going to only go for the lower end, but this was a lot lower.

How the heck do I get this fixed? And I'm assuming this will raise my property taxes?

What a pain in the ass.
 
Blazin

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HOw do you know the reason the assessment was assuming 1 bath? Did you speak with the appraiser? Since the crash appraisers have become much more conservative on values, there are always exceptions to this but it has certainly shifted. The strongest thing used in an appraisal is price/sq ft the differences from home to home are not as critical as what homes in your area are selling for per sq ft.

It should not change your property taxes, each municipality in the country can vary slightly on how they handle tax assessments but in my experience a tax assessment change is not triggered from a refi or appraisal. Most common things to trigger a reassessment for taxes is the sale of the property or a county wide reassessment where all properties are adjusted (this is usually done every 5-7 years)
 
G

Gorillaz_sl

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Blazin_sl said:
HOw do you know the reason the assessment was assuming 1 bath? Did you speak with the appraiser? Since the crash appraisers have become much more conservative on values, there are always exceptions to this but it has certainly shifted. The strongest thing used in an appraisal is price/sq ft the differences from home to home are not as critical as what homes in your area are selling for per sq ft.

It should not change your property taxes, each municipality in the country can vary slightly on how they handle tax assessments but in my experience a tax assessment change is not triggered from a refi or appraisal. Most common things to trigger a reassessment for taxes is the sale of the property or a county wide reassessment where all properties are adjusted (this is usually done every 5-7 years)
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Because they sent me a copy of the appraisal and it listed one bath, and then I contacted the loan officer and he confirmed that if I could provide proof of the 2nd bath and comps in my area they would reconsider.

Price per sq foot is important, but if you have a 3br/2b house at 1200 sqft and a 3br/1b house at 1200sqft, obviously the one with 2b is going to go for more.

The refi or the appraisal wouldn't change my property taxes, but I need to have the county update my house in their systems to reflect the 2nd bathroom, so that PNC will accept it when they work on my loan. So won't that change my property taxes?
 
K

Kedwyn

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Bathrooms can add a decent amount to an appraisal.

Don't be surprised that the value is low if they forgot to add one. The difference in many areas is substantial.

On average, appraisals for cash out type deals are very aggressive on the down side. Reasons should be obvious. Those appraisers have no reason to risk their license to go out on a limb to push the value up and the banks have every incentive to keep the value down to keep the loan to value in check. While there are guidelines for how to come to the value its still some what of an art and there is room for variance.

Let them know and they should fix it. I hate drive by appraisals they are about worthless.

Lucky you though, that likely affects your taxes in a positive way.
 
G

Gorillaz_sl

shitlord
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Hey Ked, how would it be positive for my taxes?

Also they put the onus on me to prove the 2nd bathroom exists, should I be pushing back?
 
G

Gorillaz_sl

shitlord
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Wait, wait, wait.

I am confused.

I need PNC to accept that I have 2 bathrooms, to do that it might mean alerting the county to the fact that I have 2 bathrooms, which would raise the value of my house and taxes assessed on it, correct?

How else can I prove the 2nd bathroom?
 
K

Kedwyn

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Gorillaz_sl said:
Wait, wait, wait.

I am confused.

I need PNC to accept that I have 2 bathrooms, to do that it might mean alerting the county to the fact that I have 2 bathrooms, which would raise the value of my house and taxes assessed on it, correct?

How else can I prove the 2nd bathroom?
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The county is unlikely to ever find out. I wouldn't worry about it. Get in touch with PNC as to what you need to send them to prove you have a second bathroom. Better yet, tell them to send that ass hole back out and not just drive by the house and do an actual appraisal.
 
K

Kedwyn

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Vaclav_sl said:
That would depend somewhat on locality though - homestead exemptions in some states are substantial.
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The only possible way he could get screwed on that is if his home value was below a threshold for a tiered exemption. Here we get a base 25k and if your home is over a certain value you get another 25k. So in theory if you were accessed at just below that threshold because of your 1 bath instead of two its certainly possible to hurt you despite the value being lower. So you could end up with a lower bill despite the higher assessment.

Unlikely, but something to certainly consider. Every locality / state is different. Fair point.
 
Vaclav

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Kedwyn_sl said:
The only possible way he could get screwed on that is if his home value was below a threshold for a tiered exemption. Here we get a base 25k and if your home is over a certain value you get another 25k. So in theory if you were accessed at just below that threshold because of your 1 bath instead of two its certainly possible to hurt you despite the value being lower. So you could end up with a lower bill despite the higher assessment.

Unlikely, but something to certainly consider. Every locality / state is different. Fair point.
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Yea, didn't matter in MD - but homestead exemption here in FL is something ridiculous like 250k I think I heard or some such. (renting till next year)
 
K

Kedwyn

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Vaclav_sl said:
Yea, didn't matter in MD - but homestead exemption here in FL is something ridiculous like 250k I think I heard or some such. (renting till next year)
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Its 50k. Really nice and needed since taxes can run high depending on where you are and how bad the non ad valorem hits you. Hilarious because if you look for homes in one community the tax can be X and if you go to the next community it might be 50-100% more just based on those non ad valorem portions. A lot of it has to do with the water management and how much the developer impacted the area. If they took the time to build a lot of lakes and preserve with proper drainage the fees are low, if not then they can be double or more. Pretty crazy. Just keep an eye on it if you shop in SE FL it can be quite a difference. Not sure on the rest of the state.

http://dor.myflorida.com/dor/propert...ures/pt113.pdf
 
Vaclav

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Kedwyn_sl said:
Its 50k. Really nice and needed since taxes can run high depending on where you are and how bad the non ad valorem hits you. Hilarious because if you look for homes in one community the tax can be X and if you go to the next community it might be 50-100% more just based on those non ad valorem portions. A lot of it has to do with the water management and how much the developer impacted the area. If they took the time to build a lot of lakes and preserve with proper drainage the fees are low, if not then they can be double or more. Pretty crazy. Just keep an eye on it if you shop in SE FL it can be quite a difference. Not sure on the rest of the state.

http://dor.myflorida.com/dor/propert...ures/pt113.pdf
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Hmm. Swore it was higher than that, I remembered it eclipsing some of the houses I was looking at which were generally in the near $200k range - maybe some of the foreclosures were bumping into the figure though thought it was across the board. But regardless, it's hefty considering there's plenty of $30-40k properties around here. Hell, neighbor to this rental went to foreclosure, it's on a canal w/ a dock even and it's selling for $79k. [almost exempt!]
 
wormie

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Do keep in mind that if the bathroom was installed without proper work permits and the municipality you are in is alerted to the fact, they will

a) fine you
b) demand you remove the bathroom or legalize it

In some places this could cost thousands of dollars.

Ask your loan officer to have the title company he is working with pull up building permits for the house. If th bathroom is constructed legally there will be work permits and this can be your proof to the bank.

At least thats how it would work where i live.
 
Vinen

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Out of curiosity for those of you in low cost of living areas (A house for < 200K WOWOWOWOWOWOWOWOW CHEAP)

How much do you play in residential taxes?
 
Vaclav

Vaclav

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Vinen_sl said:
Out of curiosity for those of you in low cost of living areas (A house for < 200K WOWOWOWOWOWOWOWOW CHEAP)

How much do you play in residential taxes?
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This property (Assessed at $173k apparently) was apparently $3413 in taxes in 2013 based on public record. (FL)

Old home (Assessed at $288k) I'm renting out, I paid $3.2k taxes on. (MD)

Zillow probably would answer you better than any individual could - areas vary a ton. (Frankly I'm shocked to see FL so high up there in comparison - but then again, it's one of the only taxes they do down here - no income tax or most other secondary taxes)
 
Vinen

Vinen

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Vaclav_sl said:
This property (Assessed at $173k apparently) was apparently $3413 in taxes in 2013 based on public record. (FL)

Old home (Assessed at $288k) I'm renting out, I paid $3.2k taxes on. (MD)

Zillow probably would answer you better than any individual could - areas vary a ton. (Frankly I'm shocked to see FL so high up there in comparison - but then again, it's one of the only taxes they do down here - no income tax or most other secondary taxes)
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True. Paying something around 9K here for 633K valuation. (Town: 633K, Bank: 680K)
Was just curious if the rates were higher to make-up for the lower cost of housing in general. Guess not :3
 
Vaclav

Vaclav

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Vinen_sl said:
True. Paying something around 9K here for 633K valuation. (Town: 633K, Bank: 680K)
Was just curious if the rates were higher to make-up for the lower cost of housing in general. Guess not :3
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Heh, guessing that's Cali or something - sounds like the stuff my Sister-in-Law fled as soon as Google let her telecommute.
 
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