[StBernard] Grant/Buyout Question

[Westley Annis]

Westley,

There's a lot of talk out there about possible "buy out" plans by various
government agencies.  I've probably come across about a dozen versions that
can differ quite a bit from one another.  But, one thing is consistent among
all of them - whatever you might be offered for your property will be based
off its "pre-Katrina" value.

There has been a lot of talk that some of these agencies, such as the LRA,
would use your tax assessor's value of your property.  Westley, as you
pointed out, we all know that's a joke!  Properties are ALWAYS well below
the fair market value (FMV) of your home.  Now, let's talk about that for a
moment - the FMV.  What I find ridiculous here is "everyone" (including the
folks with the LRA, Corps of Engineers, FEMA, SBA, etc.) knows "assessed"
values are far less than appraised FMV.  Yet, they would insult our
intelligence having us believe our homes are only worth what the tax
assessor says.  (Personally, I am strongly against the LRA's plan because it
proposes to deduct any insurance pay outs a home owner received.  I feel
this penalizes those home owners who took on the expense of further
protecting their home - and I can't go along with a plan that punishes
people for doing a smart thing.)

Anyway, let's get something technically, and more importantly, "legally"
cleared up here....the terms "assessed" value and "market" value (based on
an appraisal) are NOT the same thing.  Any tax assessor will tell you that.
Yet, there are some dummies out there (i.e. people with the government
agencies/commissions drawing up "buy out" plans) advocating the use of
"assessed" values as "fair market value" for a buy out plan - when they darn
well know the values are not the same.

It is extremely important we make known to the proper government agency
officials working on these buy out plans we want them to treat us fairly by
using true "market values" if offering a buy out - and NO deductions for any
insurance pay outs we received!  Of course, I will predict the future and
say whatever comes down the pipe will be to the dissatisfaction of most
property owners.  And not being one to pass up an opportunity for business,
that's why I say (since I am a certified appraiser) get an appraisal of your
home/property now in preparation of the anticipated battle.

In fact, I can't take credit for this idea....most of the people who have
contacted me to appraise their damaged property explained that's the very
reason they were hiring me - in additonal to a possible tax write off on the
loss of their home.  So some folks are already thinking ahead.  Also, once
these buy out plans kick in, trust me when I say there aren't enough
licensed/certified appraisers in Louisiana to quickly handle all the
business that will be generated.  Most appraisers - who are well established
and very busy with business from lenders/mortgage companies - cannot afford
to refuse the regular appraisal business from their "bread 'n' butter"
clients to do "buy out" appraisals.  Appraisers will be a scarcity.

I truly appreciate all the good people out there (and fellow St.
Bernardians) that have given me the opportunity to service them - and
hopefully be of some help.  Anyone can feel free to call me with any
questions.

John Scurich
Certified/Licensed Louisiana Real Estate Appraiser
985-882-9421 / 504-722-6662