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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Tax Grievance ??
So, we are waiting to hear back on a short sale. We grieved the taxes with Mark Lewis. They just said to bring a copy of the contract and they did it.
Now we just were told the bank did an appraisal on the house. It is a little under the price we paid.
My question is, can we go back to Mark Lewis and show them the appraisal of the house and get them lower? Or does it go by what we paid for the house?
Thanks!!!
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Posted 6/4/12 8:41 AM  |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: Tax Grievance ??
i think it couldn't hurt to show mark lewis the appraisal, since they go by what your house is assessed at and not necessarily what you paid for it.
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| Posted 6/4/12 10:42 AM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Tax Grievance ??
I'm a little confused.
You are buying a short sale property? Have you closed yet? When did you sign up with Mark Lewis and what tax year are your protesting?
The way it usually works is this: An appraisal is a "guess" of the property's worth - an educated guess, but still a guess. The TRUE value is the price you or someone else actually paid. Now a short sale gets into a little bit of a shady area because it's not a true sale, but a distressed sale.
If the bank's appraisal of the home came in under the purchase price, did you renegotiate the price? Was it your lender's appraisal or the original mortgage holder's appraisal? If it was the original mortgage holder's appraisal, what value did your lender's appraisal say?
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| Posted 6/4/12 11:11 AM |
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Diane
Hope is Contagious....catch it
Member since 5/05 30683 total posts
Name:
D
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Re: Tax Grievance ??
Posted by Mill188
I'm a little confused.
You are buying a short sale property? Have you closed yet? When did you sign up with Mark Lewis and what tax year are your protesting?
The way it usually works is this: An appraisal is a "guess" of the property's worth - an educated guess, but still a guess. The TRUE value is the price you or someone else actually paid. Now a short sale gets into a little bit of a shady area because it's not a true sale, but a distressed sale.
If the bank's appraisal of the home came in under the purchase price, did you renegotiate the price? Was it your lender's appraisal or the original mortgage holder's appraisal? If it was the original mortgage holder's appraisal, what value did your lender's appraisal say?
No, we havent closed yet, just in contract. The bank that holds the mortgage did the appraisal on Saturday (NOT our lender), and it came in a little under what we are paying. We called Mark Lewis 2 months agao asking if we could grieve the taxes, and they said yes, just bring in a copy of the contract. So , if we get the house, the appraisal is a little lower than what we are paying.
So, my question is can we STILL grieve it, but at the lower price of what the appraisal is rather than waht we paid??
Make sense??
so are you saying we can renogiate the price of the house?
Message edited 6/4/2012 11:28:01 AM.
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| Posted 6/4/12 11:26 AM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Tax Grievance ??
Nothing will be filed until the house is yours. I would just bring him final documentation after you close.
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| Posted 6/4/12 12:27 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Tax Grievance ??
The courts/hearing officers won't use an appraisal against the actual purchase price of the home - especially in the case of a short sale and/or foreclosure.
Short sales are a little tricky when it comes to value - most assessors/hearing officers will not give you a dollar to dollar reduction down to your purchase price because it is considered a distressed sale and not a true value transaction. Short sale and foreclosure prices are not given much weight in tax certiorari proceedings. Likely the evidence that the Town will use at any hearing will be comparable sales in the neighborhood that were true arm's length non-distressed transactions which will usually be at a higher value.
As far as renegotiating the purchase price, in a normal sale, there might be some wiggle room since in most cases if the house appraises for less than you are paying, you may not be able to secure financing. However, this is a short sale and not a normal sale and the appraisal was done by the original bank. Financing will be contingent on YOUR lender's appraisal. Therefore, there usually isn't any room for rengotiating and I don't know if you'd want to risk losing the winning bid.
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| Posted 6/4/12 12:29 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Tax Grievance ??
Posted by Cheeks24
Nothing will be filed until the house is yours. I would just bring him final documentation after you close.
Not true. The filing deadline in Suffolk County for grievances was May 15. The protest (second stage) will be sometime in July or August (depending on the Town. As a contract vendee (purchaser), you have the right to protest the taxes before you actually close.
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| Posted 6/4/12 12:30 PM |
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