I think this varies from location to location. In my area your house gets a condition grade where better condition houses get a higher assessment, and they definitely consider materials that make up your house. “Premium” materials get you a higher assessment.
And I don’t believe the threat of getting a higher assessment if you challenge your assessment is real, at least here. They can only consider the specific things you are challenging on which will lead to a lower assessment if they agree with you. I have challenged my assessment many times and won about 2/3 of them. And it’s never been raised as a result of a challenge.
Wow on decline on housing prices for prior build homes - this home, in our neighborhood, last year estimate price $580,000 (and would have gotten at least $500,000 with very quick sale); current est price range $427,000 - $523,000. 3010 sq ft and list price is $350,000. I think inventory is building up a little, and those wanting to get sold now are pricing to sell. Will see how long it takes. Median days on market in our area is 58 days with median list price of $424,900 and median cost per sq ft of $185. This one list is at 116/sq ft. With the current interest rates, many younger home buyers probably cannot purchase unless they tighten their other spending. But I see the younger people wanting to do a lot/spend a lot with entertainment/trips/etc.
Got curious about mortgage rates today. Not bad in comparison to many other timeframes, but lots higher than recent years. Chart shows July 2019 thru Aug 2022… but rates look closer to 7% today.
“Last week, mortgage rates closed in on 7% — a level realtor.com reported has not been seen in 20 years. The rate hike led to monthly mortgage payments rising $900 on a typical home compared to nine months ago.”
It will be interesting to see how the increase in mortgage rates affects RE prices. The first effect, which we are seeing now in our city, is that prices stay flat but there are very few buyers because the same prices are most expensive for those who borrow. Little sells and less inventory goes on the market. If the economy weakens, then a subset of people will have to sell and prices go down but again many decide to wait to sell. Then who knows? Do interest rates drop and prices return or do they stay lower.
Where I am…no more bidding wars…and less likelihood of even getting asking price. And the RE inventory has increased and the time on the market has increased also. Much much fewer “we have 20 showings scheduled the first day of listing” than has happened in the recent past.
Since it is Medicare etc enrollment season, I’ll post a link about IRMAA. Although most retirees have low-ish incomes, be aware that if you are at (or near) age 65 then IRMAA should be a factor in your analysis of any Roth-rollover activity.
Maybe there will be retirees (with means) who set up a “mortgage” for sake of kids/grandkids. Last year I heard of several cash deals, which of course gave advantage in bidding wars, where the grandparents were involved.
If I had the means I would certainly consider holding a kid’s mortgage. BUT… I feel comfortable only offering enough to get over the hump of needing PMI.
My sister desperately wants to move to Washington from Tennessee, as close to me as possible. But she can only afford around 375K, likely what her house will clear in TN. I’ve been hoping for a big price drop, but I don’t think it will come close, so we’re trying to figure out locations that aren’t too far away. It’s tough, almost impossible.
I would really like my mom to offer to help, but I don’t think she will get the hint. I’ve never asked my parents for anything except a few small loans that I paid back a week later. She could afford to give my sister 200K and she’d never even notice it. She has never had to dip into her savings, and has enough to last for decades. If one of my kiddos wanted to move near me, I’d write that check out as fast as I could.
I’m not sure. My sister and her husband are retired, and on a tight budget. My mom doesn’t need cash flow, she doesn’t even spend all the pension and ss that she gets. She’s elderly, has millions of dollars, and lives as if she’s impoverished since that’s her habit. I hate to ask her for anything, I know my sister would hate to ask too, but maybe I could bring it up and say we could split the excess needed between us. I really would love them to move nearby.
I think your situation is pretty common. Growing up during the depression, being frugal all their lives and now having wealth that they never anticipated.
Not aware that housing expenses have shot up and that others can’t live with the same budget they have.
I think it’s hard to imagine and some unawareness.
I’m not sure you should offer to split the costs with your mother either. If anything, you might put it as an advance on your sister’s inheritance. That moving her near your mother is to help out both you and your mother.
But to offer to split costs if your mother were to give your sister money to help offset the price of housing, I would avoid. Because your mother has plenty of money, she doesn’t need your help. But she might accept it as she is used to not spending her money. It would be easier for your sister not to be beholden to you.
I gave the same advice to someone years ago. I suggested mom/dad add a note to inheritance “to keep it fair”. Later, they “lent” to the sibling and erased the loan. Of course, they never missed the money.
If I had not helped my son buy a house last year, they’d still be crammed into a tiny apartment.
My in laws put H on the deed of their cottage. It passes outside the trust. However, in their will/trust, they have a statement indicating that the value of the cottage is an advance on his share of their estate. I know it’s hard to get an older person to understand sometimes, but gosh … it sounds like your sister will be inheriting a lot of money. Giving her an advance on her inheritance in order to be able to spend time with your mom while she’s living would be a blessing for all of you.
I posted about a similar situation in terms of money and my mom. I think the way to approach it with your mom is to say how wonderful it would be to have all of you together and how you would love for your sister to get the advance on her inheritance because everyone would benefit.
I figure there are a couple of possibilities that could be holding her back. One, maybe she is afraid that it wouldn’t look “fair” for your sister to get something and you don’t, so making sure she understands how it would be helpful to YOU might change her mind. Two, I don’t know how long she’s been widowed (assuming she is), but I know my mom right after my dad died became so tight because her monthly income became a third of what it had been. It still was more than enough for her to live on, but that does feel scary. Now that she’s had a couple of years to adjust she is starting to give little bits to the grandkids and more to us kids.
Good luck. I hope she sees how helpful it would be for y’all to have the money now rather than after she’s gone
