Why have the two houses next to mine, which were purchased as foreclosures, increased in value by 25% or more?
…while my house, that is not in foreclosure, looses worth for 3 years as well as has right away usually increasing in worth by 1%?
No additions or improvements to those dual houses.
There are 4 suggestions to question “Why have the two houses next to mine, which were purchased as foreclosures, increased in value by 25% or more?”
1) what is your source of information? Tax rolls may well increase the tax valuation of the home because the change in ownership at foreclosure breaks a capping rule. That changes state by state, though, and frequently county by county.
2) Are you comparing cost from a year ago to cost now, or are you figuring the foreclosure discount into the mix? Foreclosures can create a 25% discount from market, while your home would be valued at market in both times.
Just another thing – be careful what you wish for because you might just get it. If your valuation goes up 25%, so will your property taxes. Market assessment is one of the tax valuation criteria.
How would anyone here be able to answer that question? I highly doubt that they are increasing in value by 25%.
Maybe they have renovations, etc? Who knows?
Depends on how you determined that they "increased in value." Do you mean their tax assessment went up? Or that they sold for 25% more than when they were foreclosures? If you are referring to the tax assessment, the only thing that comes to mind is the condition they were in as a typcial foreclosure may be a lot worse condition than present condition- if they have been renovated. Many people get way too concerned about their tax assessment and think it represents real time value. Quite possibly it does not. First, depending on your state, the actual assessment of the home (not just a change in the tax rate) is done anywhere from once a year to once every 4 years unless there is a sale. Also, the assessor in most cases has never seen the interior of the home and may or may not have the correct sq footage. Honestly,. I would not worry about it. If and when you sell you homes, the tax assessment will have very little to do with how much you manage to get out of your home.
1) what is your source of information? Tax rolls may well increase the tax valuation of the home because the change in ownership at foreclosure breaks a capping rule. That changes state by state, though, and frequently county by county.
2) Are you comparing cost from a year ago to cost now, or are you figuring the foreclosure discount into the mix? Foreclosures can create a 25% discount from market, while your home would be valued at market in both times.
Just another thing – be careful what you wish for because you might just get it. If your valuation goes up 25%, so will your property taxes. Market assessment is one of the tax valuation criteria.
How would anyone here be able to answer that question? I highly doubt that they are increasing in value by 25%.
Maybe they have renovations, etc? Who knows?
Depends on how you determined that they "increased in value." Do you mean their tax assessment went up? Or that they sold for 25% more than when they were foreclosures? If you are referring to the tax assessment, the only thing that comes to mind is the condition they were in as a typcial foreclosure may be a lot worse condition than present condition- if they have been renovated. Many people get way too concerned about their tax assessment and think it represents real time value. Quite possibly it does not. First, depending on your state, the actual assessment of the home (not just a change in the tax rate) is done anywhere from once a year to once every 4 years unless there is a sale. Also, the assessor in most cases has never seen the interior of the home and may or may not have the correct sq footage. Honestly,. I would not worry about it. If and when you sell you homes, the tax assessment will have very little to do with how much you manage to get out of your home.