What happens when an appraisal comes in below agreed upon value Hi? I’m Jeff Chubb with EXP Realty. We’re here with Jason Bonarrigo of RMS mortgage and make sure that you stick around to the end of the video to find out what we’re going to do with 1 000.

So Jason first off tell me what exactly is an appraisal? Oh, an appraisal is essentially what we do to certain lenders to certify the value.

Obviously, we want to make sure that we’re lending the right amount on a market value that’s been certified by a third party.

Okay, so what happens? Is this deal completely dead if that value that has been certified by that third party comes in below agreed upon value, So let’s just make up some numbers.

Let’s say we were under agreement for 500, 000 Appraisal came in at 480.

Are we done? No, no.

The good news is no, I mean.

Obviously it depends and I could talk for hours upon the differences, but it really just means that we kind of go back to the negotiation table.

Okay.

So what’s my first option? The first option for the buyer – and I think we’re talking about the buyer here in this sense – is that they obviously could just make up the difference in cash Okay, so If they have the ability to so So, first option make up that difference in Cash, But it doesn’t always necessarily mean that I have to bring the cash Like in that case, the 480 to 500 doesn’t necessarily mean I have to bring the extra 20 grand The extra 20 grand no, of course, not And again what I Meant by the differences is obviously one client or one borrower could put down 5 and one could put down 50. The guy who’s putting out 50 has a lot more options and it’s not really going to impact the financing as much.

So we’re going to talk to each individual on a different idea, So he can kind of restructure the deal.

A little bit, Of course, Probably not bring that 20 000, But, like you said the guy who’s putting 5 down probably would have to go.

Then? We? 39? D? Have? To? Have? Make? Up? The? Difference? Or? We? Can? Talk? About? Renegotiation? With? The? Buyer? And? The? Seller? Well? And? So? That? 39? S? Option? Two? Right? Of? Course? So? Where? In? That? Case? The? Seller? Would? Go? Down? To? 480? 000? Right? Yes? Or they would, as you know, you would go back to that listing agent and say hey.

This is what we have.

This is the appraisal.

What do you think, Depending on the market and who has kind of more leverage in that situation, but hopefully, as we’ve seen in the past, most parties come together and what usually happens is they meet in the middle Right So option? One is I, as the buyer come to the table with 20 000 Just make up the difference Option two is the seller comes down 20.

000.

To that 480 000 example right Or option three is: maybe we meet in the middle or something else? Maybe it’s 490.

I bring 10 grand 10 and 10 And the seller comes down 10 000 And then I think the fourth option is well. We can’t make this work, So you know have a nice day.

We can walk away right And usually you try to get that before the right after the purchase and sales, so you have some flexibility there Right, Okay, so make sure that you stick around and check out our videos.

What actually happens when an appraisal comes in above agreed upon price? This is what happens when the value comes in below agreed upon price, and what are we going to do with that thousand dollars So, but first Jason? Where can they find you Jason Bonarrigo RMS? Mortgage 617, 413 5038 And I’m Jeff Chubb my team, the Chubb Homes Team, we’re brokered by eXp, Realty 617, 480 2600 or find us online boston2 com.

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To help you in that valuation process we offer you free access & FREE Resources 1. Mind Map for a Winning Property Tax Appeal 2. Property Tax Adjustment Category Worksheet 3. Free Access To All Comparable Sold Homes In Your Area

Property taxes, how are they assessed, how do you pay them, how are they calculated.

And remember, if this is your first time on this channel and you want to get the latest strategies from the experts, hit the subscription button below, hit the little notification bell so you don’t miss anything. So how are property taxes calculated? So that’s one of the main questions that we hear actually.

Property taxes are assessed by the city and it will be calculated based on the size of your actual land, any amenities in the area, perhaps a school is going up, perhaps a certain bus station is coming about.

So that’s typically how they’re assessed. How are property taxes actually assessed? Like what actually does an assessor go in and do, to actually figure out the amount that you pay?

So this is one of the main questions people will ask. Usually the assessor will look at the size of your property, they’ll look at the size of the home, the square footage that’s sitting on that piece of property. It could be that it’s a corner lot. It could be that it’s a pie lot you have a little bit bigger of a lot. And then of course the amenities in the area.

If there’s a grocery store, if there’s a school in the area. And do they also take into account how many years that house like how old that house is? And then how do property taxes actually affect my personal taxes? So, if you actually have your own home business for example, you have an office out of your house, you can actually have deductions and tax write offs based on that.

And are property taxes based on the assessed price, or the actual purchase price of the house? Based on the assessed price. So, the property taxes will be valued off of the size of the land typically and then the house that sits on that piece of land. And how often are they paid? And how are they paid? You can pay them by 2 choices.

You can pay once a year or you can have them put it onto your mortgage and you can have it as a monthly payment. – And if you do put it on your monthly mortgage, it’s up to the city to increase it or decrease it every year right?

– Would you expect any increases or decreases within the year? Or is it usually they give you an assessment at the beginning of the year and that’s how much you have to pay? – They’ll give you an assessment once a year, typically at the beginning of the year in the spring.

And then it’s from there if you want to choose to pay it once or if you want to pay it monthly. And earlier you had asked about how they’re paid, so you will actually go into your financial institute or call them to put onto your monthly taxes, so any bank or branch.

And they’ll pay it to the city for you. – And is it pretty much an expectation of property taxes will increase every year? – They typically do.

They can stay the same, they do typically increase each year. And is there anybody exempt from paying property taxes? – There are actually. So some indigenous cultures can be exempt, some veterans, some seniors. So there are certain parties that can be exempt from property taxes.

And you can go online actually onto the government website and you find out to see if you’re exempt.

Okay. So you have anything else to add in terms of property taxes?. So the question of the day I have for you is, did potential property taxes on home actually influence your decision of buying that home?

Let us know in the comment section below. And remember, if you enjoyed this video, or found it helpful, hit the thumbs up button, remember to comment, and remember to subscribe. Thank you, and we’ll catch you next time. Tune in next time for more expert tips and tricks to bring you one step closer to finding your dream home.

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What Happens If Appraisal Comes in Low?

How property taxes are calculated? (and how it affects buying a home)

Property taxes, how are they assessed, how do you pay them, how are they calculated.