Author Topic: home owners in suburbs of Denver complaining about 5.5% appreciation  (Read 3229 times)

clarkfan1979

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I was talking with a friend at a Halloween party who is a real estate appraiser. He told me that the specific suburb where he lives appreciated by 5.5% over the past 12 months. His neighbor was at the party and just put his house on the market. The neighbor chimed in and said, "yea, right. I wish. It's more like 3%" He was also referring to 3% as being really bad appreciation, but I can't remember his exact language.

The appraiser agreed that his neighbors house appreciation is going to be less than 5.5% because the appreciation was more concentrated on houses below the median, not above. The sticker price of the neighbors house was 15% above the median.

Even though his house appreciated by 3%, he is going to lose money because he only lived there for 12 months. He is upset about losing money and is blaming it on his suburb that only appreciated by 5.5% over the last 12 months.

 

Cali4en

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #1 on: November 03, 2019, 07:49:58 PM »
Anyone buying and selling a house with such a short occupancy should reasonably expect to lose money.  He would likely be losing money even with double the appreciation due to transaction costs and moving expenses.

six-car-habit

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #2 on: November 03, 2019, 11:24:24 PM »
 Well, our appraisal from the country assesor just came in . They go on " 100% of True and Fair market value " .  Its up 8.3% , all on the house, land didn't change. I believe last year it was 9+ % . I am the opposite of your friends neighbor . It just signals higher real estate taxes upcoming for us.  i wish the appraisal would go down instead. We'll be here nearly another decade at least.
  We Are in a good location relatively close to work, school, grocery stores. At times i feel tempted to cash out, but we do not have enough equity to get another place without a new mortgage [ even if for less owed] unless it was in a shit neighboorhood, much older house, less private, super long commute, etc. 

joleran

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #3 on: November 04, 2019, 05:50:52 AM »
Well, our appraisal from the country assesor just came in . They go on " 100% of True and Fair market value " .  Its up 8.3% , all on the house, land didn't change. I believe last year it was 9+ % . I am the opposite of your friends neighbor . It just signals higher real estate taxes upcoming for us.  i wish the appraisal would go down instead. We'll be here nearly another decade at least.
  We Are in a good location relatively close to work, school, grocery stores. At times i feel tempted to cash out, but we do not have enough equity to get another place without a new mortgage [ even if for less owed] unless it was in a shit neighboorhood, much older house, less private, super long commute, etc.

You might consider appealing - I appeal every year taking 15 minutes to find comps and another 15 minutes to submit the form.  Every year the assessor says "no, you're good" but then I get to go to an in-person appeal with a board of slightly higher level assessors and proceed to trash talk my house and how badly I'm taking care of it.  Every year they have allowed a minor reduction on assessed value and since it effectively compounds I figure I've saved a few thousand dollars over the last 5 years.

six-car-habit

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #4 on: November 04, 2019, 09:04:43 PM »
 joleran - unfortunately our house fits in the compairables #'s for size / land / locality. They do a site visit as well, so it would be hard to negatively embelish the [outside] condition.  Point taken on the small reduction you get , carrying foward in subsequent years though ....

BlueHouse

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #5 on: November 05, 2019, 10:55:12 AM »
Well, our appraisal from the country assesor just came in . They go on " 100% of True and Fair market value " .  Its up 8.3% , all on the house, land didn't change. I believe last year it was 9+ % . I am the opposite of your friends neighbor . It just signals higher real estate taxes upcoming for us.  i wish the appraisal would go down instead. We'll be here nearly another decade at least.
  We Are in a good location relatively close to work, school, grocery stores. At times i feel tempted to cash out, but we do not have enough equity to get another place without a new mortgage [ even if for less owed] unless it was in a shit neighboorhood, much older house, less private, super long commute, etc.

You might consider appealing - I appeal every year taking 15 minutes to find comps and another 15 minutes to submit the form.  Every year the assessor says "no, you're good" but then I get to go to an in-person appeal with a board of slightly higher level assessors and proceed to trash talk my house and how badly I'm taking care of it.  Every year they have allowed a minor reduction on assessed value and since it effectively compounds I figure I've saved a few thousand dollars over the last 5 years.
I've been doing exactly this and this year I got a major guilt trip from the assessor.  I didn't get a reduction this year and somehow all of my neighbors caught up to me and now we're all paying the same (or close to it) again.  Doesn't seem right, especially for new owners who have completely gutted their houses and mine is still the same builder-grade crap.

MoneyQuirk

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Re: home owners in suburbs of Denver complaining about 5.5% appreciation
« Reply #6 on: December 02, 2019, 02:44:05 PM »
That's such a high appreciation compared to most places, though.

Also, with under 5 years owner occupancy, you can't reasonably expect to make much.