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Tenpoundbass
2014 Jul 24, 5:15am
Let me know if you get it. Are there any local tax ramifications in getting that PMI taken off. It could be out of the fat and into the frying pan. If the city gets to tax you on the new value.
I'm pretty sure PROP 13 prevents that... We didn't do any permitted additions, like adding square footage.. besides installing a new HVAC system. When we refinanced the appraisal had no effect on our tax basis. Even though that appraisal was higher than our purchase price.
I will let you know... It would suck to get reassessed tax wise... but at least I could write off 25% of of that... Right now I make too much money and PMI isn't a write off at all.
I wouldn't be afraid of preparing some info for the appraiser. I mean, that is their job and all, but I've never smited anyone for doing some of my work for me. Usually I respond gratuitously
elliemae
2014 Jul 24, 3:34pm
If the city gets to tax you on the new value.
The City can only tax on the appraised value according to the tax appraisal that's completed every few years - a private appraisal doesn't change the taxable value. If it did, your taxable value would have increased at the time of the first appraisal.
Zillow's "value" is bullshit and no one cares about it unless they're trying to make themselves feel better by thinking that they have phantom value no one else will recognize.
Pull some comps, have a list of upgrades and be ready to plead your case. What's the worst thing that can happen?
lostand confused
2014 Jul 24, 10:12pm
If you are in CA, appraisals and house price appreciation won't make any difference to you tax bill??
That is the one good thing about CA-you know what your tax ill is going to be.
We bought 3 years ago, it was FHA. Our contract said we were locked into PMI for a minimum of 5 years. We refinanced a few months ago, the appraisal came in at $40K above what we bought for, but with the lock on the PMI, we said to heck with the FHA and even though our interest rate went up a little bit, we refinanced so that all the money would go to the loan - pulled some equity out of the house too.
So my experience - we chatted, he was nice enough - but he had a job to do. If I'd had something negative to say ... like, "Well the water is turned off till the leak gets fixed" (assuming water damage was obvious), I'm sure he'd listen, otherwise he just wanted to be in and out. He wasn't rude, but it wasn't his first appraisal. HE was the one to pull the comps, in the end I got to see what he was comparing us against, if I'd had a problem/issue I'm sure I could have raised a stink, but it was ... reasonable. So my advice, don't bug him. If you want to supply him with comps, you can hand them to him. He has the right to refuse, disregard or ignore them. With the way prices have been going up, you'll probably do fine.
Tenpoundbass
2014 Jul 24, 10:59pm
The City can only tax on the appraised value according to the tax appraisal that's completed every few years - a private appraisal doesn't change the taxable value. If it did, your taxable value would have increased at the time of the first appraisal.
This is Floridough
elliemae
2014 Jul 25, 6:57pm
If you are in CA, appraisals and house price appreciation won't make any difference to you tax bill??
This is Floridough
Appraisals are private assessments of property - the assessor can't increase taxes unless there is a law in place that allows for this. To my knowledge there is nowhere in the us that allows taxable value to be increased based on a private appraisal. This would open the door for fraud - appraisers who lower the value in order to decrease the owner's taxes.
But I'm not an expert, it's possible that I'm wrong.
Update... PMI was removed.. Appraisal came in over $100k above what I needed to remove PMI. Just got a nice sized HELOC approved for some maintenance to the house I was putting off. That 10% down 2011 purchase is feeling very timely at the moment.
Y
2014 Sep 16, 10:05pm
So how did you handle the appraiser?
Update... PMI was removed.. Appraisal came in over $100k above what I needed to remove PMI. Just got a nice sized HELOC approved for some maintenance to the house I was putting off. That 10% down 2011 purchase is feeling very timely at the moment.
elliemae
2014 Sep 17, 1:12am
Congrats. Now if only they could create an appraisal to remove PMS, we'd all be happy.
So how did you handle the appraiser?
He was a friendly guy, most thorough appraiser I've had though.. he was there for awhile. I gave him a print out with receipts of upgrades we did to the home as well as 5 recent comps I found on Redfin. He ended up only using 1 of the comps i gave him in his final appraisal... But he ended up picking comps that were even more generous than the ones I chose. Not complaining.
We purchased a little over 3 years ago in L.A. We refinanced 6 months later and got our PMI lowered by almost half... with a 15% equity appraisal. Now we feel we easily have 20% equity 2.5 years later based on recent comps, but due to an obscure CA law our mortgage company says we need 25% equity to remove PMI. Based on comps we still have a STRONG shot at even 30% equity. Only way it would be tight is if appraiser used a few lower comps a half mile away (on a busy street... vs our quiet cul-de-sac) with the freeway in their backyard and gas stations on either side.
My mortgage company assigned an appraiser to come out soon... I know to have receipts for recent upgrades if he asks... But some advice sites say you should print out recent comps in the area that you think are good comps. Currently there are like 5 similar homes PENDING for $100-200K more than what I need to get rid of PMI.
My experience with most appraisers is they like to be left alone... just come in.. take measurements and pictures and leave as soon as possible. Would it piss an appraiser off to hand him a print out of comps along with my recent upgrades?
Running the numbers I think I'd squeak by with just over 25% equity even if he chose only the lowest comps in my neighborhood.. and I guess i could appeal the appraisal if he did use too low of comps. Anyway.. aside from making the house look as nice as possible, offering him a drink ect... any tips for dealing with an appraiser?
FYI.. Zillow has our home "appraised" at over $100K more than we need to remove PMI. It's shot up this year due to lots of high priced comps which led me to request a PMI removal.
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