Special Assessment

[CindyR]

Well this is something you don't see every day. Buried in the new construction contract for a TW Lewis home in Estrella Mountain is a $12,000 special assessment. Be sure to read all the pages of those contracts.

 

[Jo Ann Meyer Stratton]

How will the assessment be paid? Part of property taxes? Directly to the special assessment district? Payable immediately? Lots of research will need to be done when those things pop up.

 

[KONA]

Good call. So often, we are pressured on time, thus could miss the important aspects that affect value.
"Speed Kills".

 

[KYLECODY]

Sounds like Buckeyes CFD fees payable twice a year for twenty years. Always a sticking point when you go to resell trying to make the buyers understand the seller doesn't need to pay it all back prior to close. Have not seen that in Estrella Mountains contract. I just know that subdivision is one road in, one road out, all from nowhere, means a lot of driving if you reside up there.

 

[CindyR]

Well yes this assessment is paid directly to the Community Facilities District (CFD) twice a year over 24 years and there is also a portion of it added to the regular county tax bill. So now I am working on a resale that is 2 years old. I have asked what the balance due on the assessment is as the contract specifies it will be assumed by buyer and received no answer. The stupid assessment box on page one only allows an amount. It would be very misleading to report zero since I do not know the correct amount. I am leaning towards reporting the full original $12,000 amount although I know that is false too. I would like to suggest 'see addendum' but that is no longer an option. Anyone have a nice solution?

Also, in case anyone else did not notice ARMLS now has a CFD box in the listing data - down with the Association info and Cap Improvement stuff.

 

[CindyR]

And here is a link to some good AZ general assessment data

http://phoenixwaterfronttalk.com/2014/01/11/community-facility-districts-in-phoenix-arizona/

 

[CindyR]

Well apparently 2015 will be the year of the assessment. Now I am working on a resale in buckeye with a CFD assessment that is paid in separate payments (not part of the tax bill ) twice a year. Two of the comps report that the entire CFD has been paid in full; one specifies a $6,000 savings the other does not report details. Subject reports $2800 principal balance on assessment but with interest payments original projected cost was likely $6k. So anyone want to share how they are handling this in their appraisals?

 

[CANative]

Interview some of the listing and selling agents on the comps see what they tell you.