Paving vs. Property Value

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timg

Tue Nov 13, 2007 11:27 pm

Please forgive the not-so-complete profile... I couldn't remember my old username/password and had to create a new one.

I have a '92 Fleetwood DW, 1480ft', on 1.22 acres in a residential neighborhood (not a park) in Florida. The county just paved our dirt road... now we have pavement from the major highways in the area (two to three miles in either direction) all the way up to our driveway.

When we bought a year ago, it was appraised at 103K, bought for 97.5K, and have probably paid down about 1.5K on the principal. I'm wondering if any of you might have experience how the paving might affect my property value (I'd like to get rid of the $40 monthly MI Insurance and wonder if it's worth getting a new appraisal to see if I can hit 20% equity...)? The original appraisal accounted for a dirt road.

I'd be glad to hear your thoughts!

Thanks,
Tim

PS - I'll post some pics soon now that I'm back on the forums.


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Mark
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Wed Nov 14, 2007 2:38 am

For sure a paved road will raise your value. Just watch your future property tax bills! LOL. I assume your saying that once you have 20% equity, the insurance company no longer requires the $40 fee.

Right now it's a crap shoot as to whether or not you'd get the 20%. Within a couple years you may if your not in a down market.

Mark
You can't fail if you don't try!

timg

Wed Nov 14, 2007 6:15 pm

Mark, thanks for the quick response! Indeed, the mortgage company will waive the $40 monthly Mortgage Insurance if I can show I have 20% equity on the property.

Unfortunately, we are in a "down market" in the sense that sales are down... but it doesn't seem that prices are really adjusting. I think folks are riding it out to see how the industry and government align as far as a correction. There are a lot of foreclosures in Florida, but not in this area... I hope that's a good sign!

I kind of thought the same thing as far as the "crap shoot" status of an appraisal at this point. Maybe if I paid a few extra dollars for the appraisal..... ;-)

Oddly enough, county taxes are down this year and will save me about $20/month. Also, the Governor just passed a bill for a vote in January on increasing homestead exemption from $25k to $50k, which would more than offset the $103/lot/year assessment for the paving project (county appraiser assessed the tax-roll value just over $60k). I'm pretty confident the bill will pass, because it allows business owners and 2nd residences an increase in the exemption as well.

Even so, being a "working man" and paying 6.75% interest (not bad for a mobile home in Florida), every dollar helps!

Again, thanks for the quick reply. Maybe I'll go down to the local realtors' office and see what they think about the paving.... since I'm "thinking of selling" (nudge nudge wink wink).

Tim

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