New Mexico is a "non-disclosure" state, meaning that the selling price
of real estate is not public information. This makes buying without
an agent an exercise in aggravation. Appraisals and tax assessments
are based on last selling price, if known, else comps. But most of
the housing is one-off (except mobile homes to new to have been very
modified), and selling prices are scarce. Er. When real estate sells,
the county tax assessor's office sends a query letter to the buyer,
which appears to require disclosure of the selling price. Some buyers
comply, and I am told (by regretful buyers) that as a result their tax
bill went way up.

So far, none of the professionals I have asked about this has explained
to me how an appraiser or anyone else (eg, tax assessor) can put a fair
market value on a house. I expected to hear that agents who belong to
an MLS have this information, provided by the selling agent. But no...
I have asked a licensed appraiser, real estate agents, and a mortgage
loan officer. The loan officer told me New Mexico became a disclosure
state a couple of years ago (not true). The real estate agents suggest
I offer to pay what feels right, and see how it goes, or offer to help
when I am "ready to make an offer". The appraiser said he looks at the
comps (a non-answer). Sheesh.

How can appraisals and assessments use comps in a non-disclosure state?

Una

(Una) wrote:

New Mexico is a "non-disclosure" state, meaning that the selling price
of real estate is not public information. This makes buying without
an agent an exercise in aggravation.

Not sure an agent has anything to do with it. Other than hearsay over the office
coffee pot and knowledge of similar sales *by that agency*, any agent is going
to be guessing as much as you might.

Appraisals and tax assessments
are based on last selling price, if known, else comps. But most of
the housing is one-off (except mobile homes to new to have been very
modified), and selling prices are scarce. Er.

Well, perhaps outside of Santa Fe, Albuquerque and Las Cruces. Within those
cities, selling prices are a little more rational. There's lots of production
homes being sold at public prices which establishes a baseline of sorts.

When real estate sells,
the county tax assessor's office sends a query letter to the buyer,
which appears to require disclosure of the selling price. Some buyers
comply, and I am told (by regretful buyers) that as a result their tax
bill went way up.


Hmmm. Have not heard of that, but perhaps in some counties.

So far, none of the professionals I have asked about this has explained
to me how an appraiser or anyone else (eg, tax assessor) can put a fair
market value on a house.

Well by definition, market value is what someone is willing to pay. Fair Market
Value is an ambiguous term cooked up by mortgage companies to try to ensure that
they don't get stuck with a property they can't sell and still recover any
outstanding loan.

Theoretically, taxable value is the highest potential value of the property -
not the same thing as fair market at all.

I expected to hear that agents who belong to
an MLS have this information, provided by the selling agent. But no...

Any agent that reported any details to anyone (MLS or otherwise) on a
transaction they were party to would quickly find him or herself in civil court,
defending against major damages.

I have asked a licensed appraiser, real estate agents, and a mortgage
loan officer. The loan officer told me New Mexico became a disclosure
state a couple of years ago (not true). The real estate agents suggest
I offer to pay what feels right, and see how it goes, or offer to help
when I am "ready to make an offer". The appraiser said he looks at the
comps (a non-answer). Sheesh.

How can appraisals and assessments use comps in a non-disclosure state?

You are really asking someone else to establish a value price for a property,
which only you can do. The idea of some nebulous authority setting a fair price
may be appealing, but doesn't reflect reality.

Just to help you see this - suppose you did get some sort of FMV from someone
and purchased a property. The next month the only major employer annouces they
are closing the facility in town. What's your property worth now? There are no
guarantees in life...

"Clark W. Griswold, Jr." wrote:

Just to help you see this - suppose you did get some sort of FMV from someone
and purchased a property. The next month the only major employer annouces they
are closing the facility in town. What's your property worth now? There are no
guarantees in life...

And before anyone answers - it's a trck question. The answer is that your
property is worth exactly what you paid for it, unless you go sell it. Its
taxable value may be less if all the other homes in the area suddenly start
selling for less, but assuming you still have a job, there's no reason to sell
and no affect on your wallet.

(Una) writes:

New Mexico is a "non-disclosure" state, meaning that the selling price
of real estate is not public information. This makes buying without
an agent an exercise in aggravation. Appraisals and tax assessments
are based on last selling price, if known, else comps.


If it makes you feel any better, it's not that much different in a
disclosure state for the purpose of buying, because the recordings of
property transactions lag about 4-5 months behind the sale, and
appraised valuations and assessed "market values" have only some vague
cosmic relation to actual market value.

So for purchasing, yer not really ared with good info in a fast moving
market, but at least there's something the appraisers can hang their
hats on.

How can appraisals and assessments use comps in a non-disclosure
state?

Good question to which I'm eager now to know the answer.

--
Todd H.
http://www.toddh.net/

Todd H. wrote:
(Una) writes:

New Mexico is a "non-disclosure" state, meaning that the selling price
of real estate is not public information. This makes buying without
an agent an exercise in aggravation. Appraisals and tax assessments
are based on last selling price, if known, else comps.


If it makes you feel any better, it's not that much different in a
disclosure state for the purpose of buying, because the recordings of
property transactions lag about 4-5 months behind the sale,

I think it;s a lot different. Even with home prices appreciating quite
rapidly, like in the past couple years, knowing what comps sold for 4-5
months ago is directly relevant. Prices rarely change much in that
period of time.

Plus, it sounds like in these whacko states, even the MLS is
prohibitied, from disclosing the actual selling price. Here in NJ I
can walk into any real estate office and find out what properties in
the MLS sold for close to real time.

Sounds to me like these states are pretty screwed up. And probably
ripe for a law suit to challenge the fairness of how tax assessments
can be determined fairly. For example, here in NJ, if I believe my
property is assessed unfairly, I can go find out similar houses are
both assessed for and have actually sold for. Sound very odd to want
to hide this. What exactly are they afraid of or trying to protect?




and
appraised valuations and assessed "market values" have only some vague
cosmic relation to actual market value.

So for purchasing, yer not really ared with good info in a fast moving
market, but at least there's something the appraisers can hang their
hats on.

How can appraisals and assessments use comps in a non-disclosure
state?

Good question to which I'm eager now to know the answer.

--
Todd H.
http://www.toddh.net/

On Mon, 06 Mar 2006 21:29:39 -0700, someone wrote:

Any agent that reported any details to anyone (MLS or otherwise) on a
transaction they were party to would quickly find him or herself in civil court,
defending against major damages.

Damages for what? MLS's routinely carry closed sale prices, available
to MLS members. I have never been an MLS member in her state, however
I would not be at all surprised if in the MLS listing agreements there
was a clause about the price being reportable to the MLS.

What exactly would those "major damages" be for? Unless there is an
agreement or duty to keep something secret, it is not a tort to talk.
Doesn't "Non Disclosure State" merely mean the info is not required to
be publically reported, not that it is a "classified" military secret?


Reply to NG only - this e.mail address goes to a kill file.

I could live with "sell/buy at a price you think it's worth"
except that the mortgage holder requires an appraisal. So
for purposes of financing someone other than the buyer and
seller will decide what it's worth.

The more I investigate, the more I am convinced the realtors
*do* share selling prices. And if a buyer discloses to the
county asessor the selling price, that data is used but not
made public. Of course, it is possible to estimate closely
the selling price from the tax assesment, which *is* public
data.

Non-disclosure states: Kansas, New Mexico, Texas, Utah, and
Wyoming.