Posted by Dave T on April 11, 1999 at 22:23:31:
When evaluating a property, I can have my realtor give me the sales listings from the MLS for comparable properties. These “comps” give me a pretty fair indication of the Full Market Value of the property I am considering.
When the “bank” appraisal is done in conjuction with a loan application, the appraiser will do the same thing. He will look for recent sales of comparable properties, then adjust the estimated value based upon specific features of the property.
Therefore, the MLS “comps” do give a fair approximation of the potential value of a particular property. You add or subtract value based upon your inspection of the condition and features of the property.
I never rely upon assessed value to form an opinion of market value. Assessed value is an artifical number used to establish the property tax base for the county.