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Friday, April 17, 2009

Mitigating Higher Metro Property Reappraisals?

At the same time that the Metro Property Appraiser is hitting Nashville with news about increases in the values of land and buildings that are not necessarily consistent with housing market downturns, we contracted an appraiser who works with lenders to give us a market-oriented estimate on our home for 2009.

The popping of the housing market bubble looks like it is hitting our market area dramatically, according to the contractor's report:
After record sales volume in 2006, the number of home sales in the Middle Tennessee area has declined sharply over the past two years. The MLS reports that in 2006 there were 41 sales in the subject's market area. In 2008 there were 30 sales. So far in 2009 there have been 3 sales [is that a rate that would project 9-12 total?].
The numbers that I am seeing from the Metro Appraiser don't look affected by that kind of dramatic drop. We have yet to appeal a reappraisal, and I'm going to give the community meeting process a chance to see if it will help me understand the gaps between Metro's numbers and those of lender-sanctioned appraisers. However, this year we may appeal Metro's estimate of our real property values.

By the way, I have been tweeting my thoughts on our reappraisal under the hashtag, #09metroappraisals at Twitter.

1 comment:

  1. Take a look at zillow.com. Its figures for Salemtown look suspiciously variable, but they show a really sharp spike in 2007 and then a really sharp decline. But of course reassessments come every 4 years. Zillow.com's numbers seem to suggest that Salemtown home values have roughly *doubled* over the January 2005-January 2009 period. For Nashville as whole home values over the same period appear to have increased from $135,000 to $165,000.

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