CSS question on home value

<p>anyone know by what means one should report the value of one's home on the css profile form?</p>

<p>they suggest to use what a reasonable price we would get, I believe. what about all the selling costs that would take aways from our real take?</p>

<p>You leave out the selling costs. All they care about is the value of the home. </p>

<p>Many families find that they 'place out' of financial aid simply on the virtue of their home's value, which has increased exponentially since they bought it x number of years ago.</p>

<p>for this question, there does not seem to be an objective standard that one can use to report this number (only "reasonable"); the instructions explicitly state to not use "assessed , insured, or tax value".</p>

<p>OK.</p>

<p>I SEE that we are in a SEVERE DOWNTICK IN REAL ESTATE VALUES. Therefore, I THINK, I FEEL, I BELIEVE my house is worth, AT BEST only a few thousand dollars more than I bought it 20 years ago. Moreover, It has not been kept up, and they have implemented a train whistle law that would scare away all my potential buyers.</p>

<p>What bells would go off in this scenario, if any?</p>

<p>I see that there is a question on your original purchase price, I think. Do they make AN ASSUMED rate of increase from that original number that they then compare to your stated home value number? If so, why ask, 'what is your home's value?'</p>

<p>If this is really an FA killer of a question, this seems rather subjective.</p>

<p>Look at what other similar homes in your neighborhood have sold for recently.</p>

<p>The FA killer really only applies to booming, suburban areas.</p>

<p>How do you know which schools require the CSS?</p>

<p>so I wonder if I use the Federal Housing Index Calculator value instead of the county assessed value ( which is more than Double that amount)- if I will run into trouble?</p>

<p>I read on the College Board website that a conservative but reasonable value is best arrived at by using the Fed. Housing Index Calc. and then add 10% to what is says. I tried it with my house and it came out with a value for my house that would be a great bargain for a buyer if I actually sold it for that price, but not so suspiciously low that it looks like I'm lying. I'm sure it will vary for lots of folks though.</p>

<p>wackymother:
Most private schools tend to require the CSS in addition to the FAFSA.</p>

<p>You can always find this information by going to the college's financial aid portion of their website.</p>

<p>I seem to remember there was some link I'd found 3 or 4 years ago that actually listed the CSS Profile schools. Am I crazy? Does anyone know of such a site that wackmother could go to?</p>

<p>Here's what I did this past year -- I went with the Federal Housing Index calculation and added an end note stating that was my source. </p>

<p>I don't see how anyone can get "in trouble" by using a reasonable source and explaining it. If the college doesn't like it, they can ask for supplemental information. </p>

<p>So I would say: go with the lowest reasonable valuation, and if you feel uncertain, explain where or why you got it. For example, if you have a lower recent appraisal or you are factoring in issues like major repairs needed to your home to arrive at a lower value -- simply say so.</p>

<p>Thanks for the info, curiouser. I'll go take a look at DD's top choices. </p>

<p>In the meantime, I found and used the Federal Housing Index calculator at <a href="http://www.finaid.org%5B/url%5D"&gt;www.finaid.org&lt;/a> and found that they multiply by 1.5 (based on the year we bought) and then suggest adding 10 percent. </p>

<p>The number they come up with is really, really low, which is great, except we live in one of those hot suburban areas where the prices have more than doubled in the past few years. So I'm happy to go with the FHI calculator number, but I'm concerned that it will be easily spotted as a red flag.</p>

<p>We get this question so much. "I just can't possibly write in a number for how much my home is worth!!! How would I know???" Baloney. Most heads of household can estimate pretty accurately what their real estate is worth at any time. It is just one of those things you know. </p>

<p>Also, any real estate agent in your neighborhood will be glad to give you an estimate of value (what they think it would sell for in a reasonable time) on the back of their business card. There are dozens near everyone, without much to do right now. Get 10 estimates and take the lowest one. Or toss out the lowest and highest and average the middle eight. Whatever lets you sleep at night.</p>

<p>Last resort, if you really are totally clueless, get an appraisal! For a couple hundred bucks, or maybe a little more, you can get a certified appraisal, just like banks use to make you a loan. Then you know what the property is worth, from an expert.</p>

<p>Now, it is absolutely true that real estate is in a correction mode in most markets right now. That does not change that for Profile you put in the estimated value as of the moment you sign and file the form. I am not sure why this question is coming up right now at this time of year, but it could not hurt to wait a while before doing the Profile if it is not really due yet.</p>

<p>In Texas, your local tax assessor has a great big finger on the pulse of real estate prices. Our assessment, like it or not, is probably pretty close to what we could get.<br>
What other states do "real value" taxes? Just curious, and don't mean to hijack the thread, but it could help some folks figure out a fair value.</p>

<p>Not always accurate but you can try zillow.com and see if it seems to match what you thought....</p>

<p>D-mom, you are right about Texas appraisals. I know of a few other states, such as California, where the appraisal is redone only when the property changes hands. So the tax appraisal records are totally unreliable as far as real values.</p>

<p>Around here we get a "fair market value" on our annual tax bill in December, along with the assessed value- I would imagine in most states you would want to use that (it's probably lower than a real estate agent's valuation). Using numbers from a legal source should not be contestable- if the city wants to tax you on a low amount, use it; and if the information can be given before any increases, file early!</p>

<p>Wow. I just tried the Federal Housing Index. It is significantly MORE than my rough estimate and a little more than what sellers are asking for homes in my neighborhood.</p>

<p>Why I am asking this question...</p>

<p>trying to think ahead. The college admin told me to have a filled out css profile if we were thinking of ED on Nov something for that school.</p>

<p>I think I discovered that it is hard to do the css now if you are talking about a fall 2008 start date, especially since 2007 taxes have not been done.</p>

<p>so a couple questions:</p>

<p>1) why did the admin ask for a css profile for an admission process that is supposedly "need blind" ( I also asked this in another thread)</p>

<p>2) CAN I fill out the css for a 2008 school NOW?</p>

<p>1) Even if it's need blind, you need to fill out the FA paperwork at the same time as the application so that they can give you your estimated FA award at or near the time of acceptance. Since it is possible to be released from an ED commitment due to inadequate FA, you want to know about the possibility before you withdraw your other applications (or so that you can complete some additional ones).</p>

<p>2) Yes. You use estimated numbers (and that's why you get only an estimated FA award). Then once your taxes are done, by the school's deadlines of course, you amend the application with the real numbers and the school adjusts your FA award accordingly (or doesn't).</p>

<p>mom58, I did the same thing, and it's way more than my house appraised for prior to the real estate downturn!</p>

<p>r.e. downturns happen....and are not quickly and sensitively reflected in r.e. appraisals. It seems "reasonable" for the person being profiled to be cautious and conservative on this question.</p>

<p>another aspect of my question seems to be:</p>

<p>since by the css's own admission there is no objective standard that it is using in reporting this very important number, to what extent do colleges 'pop the hood' of the CSS profile and examine the detail underneath, such as this question on house value?</p>

<p>here is another question on the css profile, related to this last question:</p>

<p>does the css profile yield the Expected Family Contribution (EFC) number, or is that another process? What is that process? </p>

<p>Or does the college 'pop the hood' on the EFC and examine and question the details backing up the EFC?</p>

<p>FAFSA- will give an EFC- however- PROFILE may give a different EFC- and if the school has its own forms, they may cement the PROFILE EFC.
PROFILE EFC, as it takes into account home value and all parents, custodial or not, is usually higher than FAFSA EFC, sometimes,* much* higher.</p>

<p>The way the zipcodes are drawn- my area encompasses heavy industry ( manufacturing)- as well as commercial shops as well as view homes. So even though I live much closer to the industry and have no view, my taxed assessment increases every year and has for decades, because * the land* the house sits on is very valuable ( to someone who would tear it down and build a condo]</p>

<p>I have always just used the tax assessment- minus the mortgage and a tad more for prep- but we already have taken out more on our mortgage specifically to pay for our oldest college-
Using the housing index would benefit us immensely, as would choosing a school that only used FAFSA.</p>

<p>Our taxes are due April & October- increases in assessments come out in July- appeals are due 60 days after you receive your increase- funny how they time it in the summer when people are too busy to do the legwork.
Im still trying it- but I have tried it before and been turned down.</p>

<p>Its a great time to buy "if" you are coming from an even higher priced area-</p>

<p>Our experience has been that schools vary in their assessment of PROFILE EFC. D only applied to one school using PROFILE. While they used the FAFSA EFC to determine need- they did not take into account other expenditures shown on PROFILE to lower it below FAFSA EFC ( medical expenses etc)
However- other schools seem to - according to reports from friends and neighbors.</p>