Comments on: Get ready for real estate assessments in Albemarle County http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/ Tracking Charlottesville's Real Estate Market since 2005 Tue, 16 Mar 2010 21:50:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: City of Charlottesville’s Assessments Decline | RealCentralVA.com http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-29353 City of Charlottesville’s Assessments Decline | RealCentralVA.com Thu, 28 Jan 2010 22:32:28 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-29353 [...] We’ve been doing this assessment dance in Charlottesville and Albemarle for quite some time. [...] [...] We’ve been doing this assessment dance in Charlottesville and Albemarle for quite some time. [...]

]]> By: “Everything’s on the Table” – Albemarle County Schools Budget | Real Central VA http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-28635 “Everything’s on the Table” – Albemarle County Schools Budget | Real Central VA Fri, 27 Nov 2009 17:02:05 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-28635 [...] Albemarle County assessments are going to be a hotly-debated topic this year. [...] [...] Albemarle County assessments are going to be a hotly-debated topic this year. [...]

]]> By: Albemarle County Assessments are on the Horizon | Real Central VA http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-22850 Albemarle County Assessments are on the Horizon | Real Central VA Thu, 22 Jan 2009 16:42:42 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-22850 [...] I said last year: 1) Appraisal done by the bank to determine their risk level and what they are willing to lend. [...] [...] I said last year: 1) Appraisal done by the bank to determine their risk level and what they are willing to lend. [...]

]]> By: cVillain » Blog Archive » $138 Million for a Bus System? http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-13398 cVillain » Blog Archive » $138 Million for a Bus System? Mon, 18 Feb 2008 11:47:45 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-13398 [...] they going to get the money from those “increases” in real estate assessments? I ride a bus to [...] [...] they going to get the money from those “increases” in real estate assessments? I ride a bus to [...]

]]> By: Anonymous Coward http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-11947 Anonymous Coward Tue, 15 Jan 2008 03:20:05 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-11947 Jim -- that's helpful . . . thanks. Jim — that’s helpful . . . thanks.

]]> By: Jim Duncan http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-11946 Jim Duncan Tue, 15 Jan 2008 03:00:10 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-11946 AC - I see there as being three different valuations - 1) Appraisal done by the bank to determine their risk level and what they are willing to lend. Appraisals are also looking, to a greater degree, at the (immediate) past. 2) Assessment that is, by code, supposed to be 100% of market value - this is, and has been, with regards to true market value, irrelevant, as it is not a up-to-date as a market analysis reflecting <em>current</em>market value, as they are done once yearly. Up until last year, they were done, in Albemarle, every two years. Nelson does them every five, I believe. 3) Market value - as determined by a ready, willing and able buyer and seller having a "meeting of the minds." Government's assessment is <em>a</em> take on fair market value, but is less accurate, in my opinion, as it is subjected to less critical analysis and not subject to the open market. AC -

I see there as being three different valuations –

1) Appraisal done by the bank to determine their risk level and what they are willing to lend. Appraisals are also looking, to a greater degree, at the (immediate) past.
2) Assessment that is, by code, supposed to be 100% of market value – this is, and has been, with regards to true market value, irrelevant, as it is not a up-to-date as a market analysis reflecting currentmarket value, as they are done once yearly. Up until last year, they were done, in Albemarle, every two years. Nelson does them every five, I believe.
3) Market value – as determined by a ready, willing and able buyer and seller having a “meeting of the minds.”

Government’s assessment is a take on fair market value, but is less accurate, in my opinion, as it is subjected to less critical analysis and not subject to the open market.

]]> By: Anonymous Coward http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-11945 Anonymous Coward Tue, 15 Jan 2008 02:47:14 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-11945 Hello Mr. Hodges. What you say helps me sort this through -- so the bank works off the appraisal, rather than the assessment. Do I understand you to say that these two estimates of value are done according to different criteria? Is the government's assessment not a take on fair market value? Thanks. AC Hello Mr. Hodges. What you say helps me sort this through — so the bank works off the appraisal, rather than the assessment. Do I understand you to say that these two estimates of value are done according to different criteria? Is the government’s assessment not a take on fair market value?

Thanks. AC

]]> By: Matt Hodges http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-11933 Matt Hodges Mon, 14 Jan 2008 20:10:42 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-11933 AC: In your mind differentiate the assessment from the fair market value of an appraisal. The assessment is done by the County/City and the appraisal is done for the benefit of the lender by a for-profit company. The appraisal should better represent what you could expect to sell your home for, should you wish to. Further, in the Central Virginia area, there are no "declining" markets. The closest declining market is Spotsylvania County. This means that the market is flat to up in value. That being said, just like there is no national temperature for the US, all houses in Central Virginia are not flat to increasing in value. Every house, depending on the condition, location and demand (and a whole mess of other market conditions) will sell at the correct price or appraise for the value you need to refi. We are fortunate to be in a market that has very favorable stabilizing influences, like UVA, NGIC and other major employers. As our employment base grows, so will the economic prosperity in our area. If you or any local resident is concerned about getting out of their ARM, contact a local loan officer about their options. AC: In your mind differentiate the assessment from the fair market value of an appraisal. The assessment is done by the County/City and the appraisal is done for the benefit of the lender by a for-profit company. The appraisal should better represent what you could expect to sell your home for, should you wish to. Further, in the Central Virginia area, there are no “declining” markets. The closest declining market is Spotsylvania County. This means that the market is flat to up in value. That being said, just like there is no national temperature for the US, all houses in Central Virginia are not flat to increasing in value. Every house, depending on the condition, location and demand (and a whole mess of other market conditions) will sell at the correct price or appraise for the value you need to refi. We are fortunate to be in a market that has very favorable stabilizing influences, like UVA, NGIC and other major employers. As our employment base grows, so will the economic prosperity in our area. If you or any local resident is concerned about getting out of their ARM, contact a local loan officer about their options.

]]> By: Anonymous Coward http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/comment-page-1/#comment-11929 Anonymous Coward Mon, 14 Jan 2008 18:54:17 +0000 http://www.realcentralva.com/2008/01/14/get-ready-for-real-estate-assessments-in-albemarle-county/#comment-11929 Hello Jim. A question about the role that assessments play in real estate transactions -- is it true that lenders will the the amount they are willing to lend tightly to the most recent assessment? If so, then I think I see a potentially significant market effect of falling assessments. I.e., they take away re-financing options for at least some of the large number of folks who are in ARMS that are re-setting over the next 9 mos (we have a big wave of re-sets due this summer). Banks that might have been willing to write a fixed rate re-finance at assessment X (which fell within the bank's loan-to-value guidelines) won't be willing to write the same loan at assessment 0.9X, which is where some people will be. And that unwillingness could, in turn, contribute to more foreclosures, which puts more houses on the market, which further depresses demand, which reduces assessments, etc. etc. -- you see the picture. Hello Jim. A question about the role that assessments play in real estate transactions — is it true that lenders will the the amount they are willing to lend tightly to the most recent assessment? If so, then I think I see a potentially significant market effect of falling assessments. I.e., they take away re-financing options for at least some of the large number of folks who are in ARMS that are re-setting over the next 9 mos (we have a big wave of re-sets due this summer). Banks that might have been willing to write a fixed rate re-finance at assessment X (which fell within the bank’s loan-to-value guidelines) won’t be willing to write the same loan at assessment 0.9X, which is where some people will be. And that unwillingness could, in turn, contribute to more foreclosures, which puts more houses on the market, which further depresses demand, which reduces assessments, etc. etc. — you see the picture.

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