Legal Question in Real Estate Law in Massachusetts

The town has my business building and land assessed at $280,000. When I went to the bank to refinance they said I would have to pay $500.00 for assessment fee if it came in lower than $240,000. The bank assessed the business building and land at $215. The town won't budge and I have to pay taxes on $280,000. I believe the Berkshire bank is ripping off the residents of South Hadley, MA for a $500.00 fee for fake appraisals. How can there be such a hugh difference and who is right? This same attorney that works for the bank has serious shady reputation in small town of South Hadley, MA. I had to pay the $500.00, but would like to help residents not be ripped off by this Berkshire Bank in South Hadley, MA


Asked on 9/05/09, 11:09 am

1 Answer from Attorneys

I have never heard of a bank charging an assessment fee for an appraisal. It is common to charge for an appraisal, but not an additional fee if the property falls below a certain value. They can charge an additional fee if they feel the equity in the property has too little equity.

First, get a copy of the appraisal, which you are entitled to get. Then go see the town assessor and ask why this valuation is wrong and his is correct.

Either the town is wrong or the appraiser did a poor job. It is not uncommon for appraisers and town assessors to get different values but appraisers rarely more than 20% lower than assessors.

Good luck.

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Answered on 9/10/09, 11:40 am


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