Real Estate in FL.......

[JupiterSunsation]

Got a buddy trying to buy a house and the tax rolls are being reduced in the next couple months. It is advantageous to wait it out but if interest rates rise then it is a moot point.

Issue is if the house is advertised at 600K the county property appraiser probably has the house valued in the low 300's. The banks are not taking this exact value but they are not seeing the 600K dream number either. This seems more inflated the higher the asking price on the house. Several 6mm homes are only valued at 3mm+/- yet the asking price is still in 2005-07 dollars. The realtors want the listings so they don't want to be the "bad cop" and tell the buyers they are 3 years too late with that asking price. The county value was less important in the fast paced/rising market since it could be argued the county value lags the uptick. But in a falling market buyers are looking to the county for valuation like the Duke brothers awaiting Clarence Beaks crop report!

My question is.......Is this scenario the same all over the country or is this just another Florida anomaly?

 

[htrdlncn]

Property value in south florida has almost never matched the tax roll, my last 3 propertys were valued at 116k(Kendall), 117k(Miami) and 249k(Palm Beach) and they sold for 250k, 279k and 450k,
my view is that the property is worth what it will sell for, no more,no less.
Problem is too many people got their dick caught in the door by not getting when the getting was good and now are stuck with huge notes on property worth half what they paid for.
Im extremely happy I got out 5 years ago and bought here, that decision
saved me from being just as bad off as they are now and made me some decent money to boot.

 

[JupiterSunsation]

The other issue is the build cost......You can build a nice house for $100 a sq foot again (not including the lot). An economy home can be had in the $60-80 a sq ft range. Mansions with saturnia floors, top of the line kitchens/baths can be done $150 a sq. The builders are working for less to due to the lack of demand. I spoke with a long time area builder and he hit the "time machine" in his bidding recently, going back 10 years on pricing!

So back to the inflated values, the other way is what can it be built for new and then value based on that number. 10 year old house, nice neighborhood 300K/ 2500 sq ft. House could be built at $100 a sq (250K) then add the lot value. How much of a premium would a buyer pay for a finished product (done house, move in) vs. the value in having a brand new/ built the way you want home that could go over estimates in cost.

BTW all of this has been irrelevant in the last 5-8 years in FL since everything from lots to building costs spiraled to the moon!

 

[JupiterSunsation]

Property value in south florida has almost never matched the tax roll, my last 3 propertys were valued at 116k(Kendall), 117k(Miami) and 249k(Palm Beach) and they sold for 250k, 279k and 450k,
my view is that the property is worth what it will sell for, no more,no less.
Problem is too many people got their dick caught in the door by not getting when the getting was good and now are stuck with huge notes on property worth half what they paid for.
Im extremely happy I got out 5 years ago and bought here, that decision
saved me from being just as bad off as they are now and made me some decent money to boot.

Stuff now has sold under county value or right at it. Had an aquaintance sell at 241K, house was appraised at $240,841....nice house but in a subdivision filled with identical homes! Just saw one on the ICW, nice house heading towards foreclosure sold for 1mm, assessed at 1.150. The values are getting recalculated in June for Broward/Palm Beach. I suspect another 10-15% decrease for most......

 

[htrdlncn]

No doubt it is a great time for anyone with the means to make some good buys.
Just may be a while before they can turn a good return on investment.

 

[Sammyb713]

No doubt it is a great time for anyone with the means to make some good buys.
Just may be a while before they can turn a good return on investment.

:iagree:

Property in Baltimore County is moving very quickly lately...

 

[Cash Bar]

JS- If he really wants a number, get a QUALIFIED appraiser. The one(s) I use has been pretty much nailing values, including the stuff we do at auction.

 

[JupiterSunsation]

JS- If he really wants a number, get a QUALIFIED appraiser. The one(s) I use has been pretty much nailing values, including the stuff we do at auction.

How far off is the appraiser coming in from the county numbers? 10% higher, even with or 10% lower as a general rule?

 

[Cash Bar]

Certainly depends on the comps. The single fam stuff> 250 has been holding about the county numbers. The waterfront is still varying by the areas.

 

[JupiterSunsation]

Certainly depends on the comps. The single fam stuff> 250 has been holding about the county numbers. The waterfront is still varying by the areas.

100% what I thought.......