Real Estate Market must be loco

[phade]

Be ready for tax increases everyone. The inflated prices are here to stay for a while and the tax assessors are coming for your booty. Trust me, they are.

[BizCT]

15 hours ago, moog5050 said:

The funny thing is that little stuff that makes it look new like painting a few walks and replacing carpet in the kids room, I was told don’t even worry about it.  I guess that is fine with me. 

Same. except they suggested i take taxidermy down off walls and then it was 40+ showings in 3 days and done.

Edited March 3, 2022 by Biz-R-OWorld

[BizCT]

It's not just NY either. My Uncle lives in Boulder CO. He's getting divorced. They Paid $540K in 1997, just sold for $3M cash.

[moog5050]

It should be noted that even if houses in a municipality are reassessed to new market values, that doesn't necessarily mean an individual that has that increased assessment will have a similar increase in taxes paid.   The tax levy determines that.   The levy is the total amount required to be collected by the municipality for cost of municipal services.  Its the pie so to speak.  The assessments determine how that pie is split up among properties in the municipality.  If all houses are reassessed proportionally and the tax levy remains the same, theoretically the taxes paid by each reassessed property would remain the same and the tax rate decreases.  Practically, they typically go up because municipalities have increased costs over time and seize the opportunity to increase the levy, but with housing costs are going up much faster than the cost of municipal services, increases in assessed value should not result in a significantly higher taxes due unless your property's value increased at a rate much higher than others.   Hope that makes sense.

[moog5050]

15 minutes ago, Biz-R-OWorld said:

Same. except they suggested i take taxidermy down off walls and then it was 40+ showings in 3 days and done.

I was told to take the heads down too.  lol   But I may not need to if I sell before its ever listed.   We shall see.

[suburbanfarmer]

2 minutes ago, moog5050 said:

It should be noted that even if houses in a municipality are reassessed to new market values, that doesn't necessarily mean an individual that has that increased assessment will have a similar increase in taxes paid.   The tax levy determines that.   The levy is the total amount required to be collected by the municipality for cost of municipal services.  Its the pie so to speak.  The assessments determine how that pie is split up among properties in the municipality.  If all houses are reassessed proportionally and the tax levy remains the same, theoretically the taxes paid by each reassessed property would remain the same and the tax rate decreases.  Practically, they typically go up because municipalities have increased costs over time and seize the opportunity to increase the levy, but with housing costs are going up much faster than the cost of municipal services, increases in assessed value should not result in a significantly higher taxes due unless your property's value increased at a rate much higher than others.   Hope that makes sense.

I agree that is how it should be but we all know that local municipalities costs are going up too. No one wants to drive snow plow trucks at lower rates when subway offers $18/hr.

[moog5050]

1 minute ago, suburbanfarmer said:

I agree that is how it should be but we all know that local municipalities costs are going up too. No one wants to drive snow plow trucks at lower rates when subway offers $18/hr.

I agree.  I am just pointing out that if your house doubles in value due to the market, it doesn't mean your taxes suddenly double in value.  

[Moho81]

What would you buy even if you could sell your existing at profit.. you would have to pay the overly inflated purchase price if you beat the bids.

It wouldn’t be anything too different from what I we now and we bought back in 2014 when prices where normal and we got the house for UNDER asking price. In theory we could sell for a profit buy something even at the inflated prices and walk away with almost the same mortgage payment.

But like I said there’s just to much going on right now to even worry about it. Our house is perfectly fine.


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[BizCT]

2 hours ago, Lawdwaz said:

Lots of us can sell for way over assessed values including some crazy high stupid numbers but if you don’t have a place to go already, you’ll be paying these grossly inflated prices too.   What’s ya gain then?

Oh you want to build huh? Lol……grab your nuts and bend over.   Or as we used to say get bent for lent.  

(sorry to bring religion into this)

It's sell high, and buy high. But Interest rates were crazy low this past summer so that helped people. But I think the really draw was for people selling and moving completely out of the northeast and going down south where taxes are way less and housing is still way cheaper than the northeast. I have a former coworker who moved from westchester to greenville, SC. His taxes went from $28K to $1,800. His house is now bigger, newer, etc. and way cheaper

[Steuben Jerry]

1 hour ago, moog5050 said:

It should be noted that even if houses in a municipality are reassessed to new market values, that doesn't necessarily mean an individual that has that increased assessment will have a similar increase in taxes paid.   The tax levy determines that.   The levy is the total amount required to be collected by the municipality for cost of municipal services.  Its the pie so to speak.  The assessments determine how that pie is split up among properties in the municipality.  If all houses are reassessed proportionally and the tax levy remains the same, theoretically the taxes paid by each reassessed property would remain the same and the tax rate decreases.  Practically, they typically go up because municipalities have increased costs over time and seize the opportunity to increase the levy, but with housing costs are going up much faster than the cost of municipal services, increases in assessed value should not result in a significantly higher taxes due unless your property's value increased at a rate much higher than others.   Hope that makes sense.

Well stated.

[grampy]

We bought our home almost a year ago. Actually payed a little over asking price. Was talking to our realtor who I've known for years. He said he could sell our house today, for minimum of 40k more than what we paid for it less than a year ago! That's truly loco!

[luberhill]

6 hours ago, Moho81 said:

she got two more offers over night. she's now at 50k over her asking price. She bought this house in 2019, has not done anything to it besides live in it and she has the potential to make $90k on the sale of the house. 

Makes me wish we where in a better spot to make a move but way to many variables right now to even consider it. 

Is this a 400k or higher home ?

[Moho81]

Is this a 400k or higher home ?

It is not. With the offers over asking it’s getting close though.


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[luberhill]

13 minutes ago, Moho81 said:

It is not. With the offers over asking it’s getting close though.


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We just put in an offer on a home and went 31k over asking , 10 offers and ours was not the wining one !

Im thinking it went 60k over asking and they left a 100k deposit 

[Paula]

My budget is not at all like any described. 

When I was looking a few house sold sight unseen, for asking and more. One house I put a bid in for was for $15,000 below asking, I took in consideration how long it had been on the market and Winter was coming so I thought I was doing them a favor so they wouldn't have to pay for the heat bill and taxes were coming up. That pissed them off and wouldn't even take a second offer from me, they ended up selling it for $25,000 below asking early spring.  I changed my criteria and went with a ugly fixer upper,2 bedroom that no one wanted. I had it reassessed so I am happy with my numbers

[luberhill]

4 hours ago, moog5050 said:

People say overpaying but honestly I think there is a permanent price adjustment on housing taking place.   We will not see prices like we did 3 years ago ever IMO.  Market is what it is - nice being the seller now.   lol

Agree, prices won’t go down 

[Moho81]

41 minutes ago, luberhill said:

We just put in an offer on a home and went 31k over asking , 10 offers and ours was not the wining one !

Im thinking it went 60k over asking and they left a 100k deposit 

That's wild! 

[Moho81]

So @moog5050 how anxious have you been the last 24 hours? LOL only another 25 more hours to go before you might hear something. 

[moog5050]

27 minutes ago, Moho81 said:

So @moog5050 how anxious have you been the last 24 hours? LOL only another 25 more hours to go before you might hear something. 

Not at all.  I know it’s a sellers market. I already cleared everything for the new house.   If this particular buyer doesn’t put the offer in I want after viewing tomorrow, we will list it in a month or so.    Realtor acknowledged it will go quick and for more than I was hoping.  Plus I really need 2-3 months to move. 

[Nomad]

My niece sold her home here for 200k or so , how she made out was buying one in Tenn. That one was 400k but about the same payment though .

Our daughter pays 7k in taxes here on her home she paid 160k for , in Tenn. it would be a few hundred ,leaving $6000or more per year for mortgage payments . Fun fact you pay school tax one time there, when you purchase or build , our friends paid I think 3k when they built their home there .

That house I posted near where we are staying will be torn down for sure, they build these “ hotel “ homes that rent for $1000 a night . They line the street we’re on , and there’s currently three more being built around us .

 

[wolc123]

2 hours ago, Biz-R-OWorld said:

It's sell high, and buy high. But Interest rates were crazy low this past summer so that helped people. But I think the really draw was for people selling and moving completely out of the northeast and going down south where taxes are way less and housing is still way cheaper than the northeast. I have a former coworker who moved from westchester to greenville, SC. His taxes went from $28K to $1,800. His house is now bigger, newer, etc. and way cheaper

Once global warming kicks in a little harder, in a few years, they will be heading north again.  Even today, you couldn’t pay me to live south of Gettysburg PA.  It is fine to visit down there, in the winter and early spring, but no way would I want to live down there, in the summer or fall.

[REDNECK4LIFE32]

What are the interest rates on a 30 year mortgage now. I know last May in Georgia we were quoted 2.5% for a VA home loan with no down payment. Bet there up there now. Still debating whether I want to move permanently or buy a furnished vacation rental condo. Use it when we like and rent it weekly or whatever. 

[Trad bow]

Our realtor told me not to worry about my mounts , skulls etc saying you live in county and people expect it. I left everything up and a single retired woman gave us $45k more than I listed it for.  Of the six offers to n one week not a single one was list price.

[moog5050]

4 hours ago, REDNECK4LIFE32 said:

What are the interest rates on a 30 year mortgage now. I know last May in Georgia we were quoted 2.5% for a VA home loan with no down payment. Bet there up there now. Still debating whether I want to move permanently or buy a furnished vacation rental condo. Use it when we like and rent it weekly or whatever. 

Gotta be a VA deal.   20% down or you pay PMI.  Rates are around 3.5 for 15 and 4 for 30 with top credit.  They were going up and dropped a touch earlier this week.  

Edited March 4, 2022 by moog5050

[BizCT]

Gotta be a VA deal.   20% down or you pay PMI.  Rates are around 3.5 for 15 and 4 for 30 with top credit.  They were going up and dropped a touch earlier this week.  

+1. They were 2.75% in the summer but nowhere close now. Bank employees get an extra 0.5% off. My brother’s wife works at M&T so they got 2.25% crazy. I got 3.5% (locked right before the most recent jump), but i would have had 2.75% in the summer. Oh well


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