Expert: Jim Root - 1/19/2010

Question
QUESTION: I'm purchasing a home, set to close the end of this month.  I just got the survey today and it shows the property to be .77 acre.  The MLS states the property to be .82 acre, the country records shows it to be .823 acre.

Originally, this house sat on 1.423 of an acre.  Before the current owners of the house purchased it, it seems the land was split by the previous owners amd a house was built on the sold portion.

I found a survey on line of the other house, which lists it at .66 acre.  

The total of what the county says the house I'm buying is to be, .823 and what the other property is said to be, .66 would bring the total acreage of 148.3, not 142.3, so clearly, there's a .05 acre discrepancy.

Should I ask the surveyor where this discrepany is?  If added together what the surveyor shows, .77 and the other property of .66, that leaves .3 unaccounted for somewhere as well.

If in fact there is only .77 acre instead of .823, would it be a misrepresentation?  Could I ask for a price reduction on the home due to this difference, and if so, how would it be fair in figuring out the price?  And last, since the county shows it to be bigger in size than it supposedly is, would it be worth having them look at this for lowering the property taxes?  

The way I figured it, the property is 2305 sq. feet smaller than I thought I was getting, that is, unless there is something I'm unaware of when it comes to surveys and how the acre is figured.

Thanks for any insight!


ANSWER: Hi DEBBIE--

Ask the Surveyor to find & explain any discrepancy(s) that may exist in his/her survey of your property and/or the recorded survays of the others that "just don't add up!"Ask a Lawyer about "misrepresentation," as you'll need a valid "legal opnion" on that.

If,in fact, the property is 2300 (mol) "feet smaller" (Do you mean square feet?)than you thought you were getting,you'll have to ask the County Assessor and the Seller respectively about lowering Taxes and/or Price!

Speaking as a former Appraiser, that 2305 (square) feet of dirt makes little or no significant contribution to the overall Fair Market Value of the Home and Site on which it sits.

--JIM



---------- FOLLOW-UP ----------

QUESTION: Thanks so much for the reply and your insight and expertise.

I found the deed for the part that was sold and it does list the portion of the lot sold as being .66 acre.  I'll call the surveyor and ask him if he can shed light on his survey and the discrepancies.


Yes, I meant 2300 square feet smaller.  Would one base a reduced price on what the appraised value of the land is, minus the house?  Is there any specific type of calculation to use?  To me, 2300 sq ft seems like a lot, especially since the house is only 2048 sq ft, it's about 6% less.  My offer was based on the house and the size of the lot being what was being represented.  

I'm hoping they'll come down in the price.  Not sure though, will ask atty.  Would this difference make much of a difference when it comes to the property being assessed for property taxes?

Thanks so much for you help!!!!!  

Answer

If the difference in the size of the lot is unacceptable to you you MAY be able to withdraw your Offer without penalty if there was "MISREPRESENTATION!" and you based your Offer on having a certain size lot for yard purposes. Again, ask a Lawyer about this.And the Seller is more likely to drop the price SLIGHTLY if you "threaten" to undo the deal! It IS a"Buyer's Market," you know?

I doubt that your appealing property taxes will be cost effective--or sucessful. Assessor's use a Computerized Valuation Method and to appeal they require the Taxpayer to provide a Formal Appraisal & in your Case, probably a Formal Survey.Maybe surveys of all the surrounding properties. And you'll have to meet the Appeals Board; time is money. If you suceed, the minimal decrease in your property tax won't be worth it!

--JIM