Assessment vs. Appraisal vs. FMV--Equity? - Posted by Nate

Posted by Kristine-CA on July 09, 2003 at 17:42:50:

There are many reasons why it is NOT a good idea to depend on tax assessor info regarding property value. That number is not a “comp” (comparable property) and should never be used as such. In some areas where the the sales price of a property can affect the assessed amount, the number can be used as a guideline. But never, never depend on this number. It is for the purposes of the tax assessor and should be disregarded by you.

Get a title company or agent to give you comparable sales and do your own comps. You can read how to do this in JP Vaughan’s article on this site. Make sure you check at least the overall condition of the property so you know what properties truly are comparable.

There may or may not be instant equity in the property you are looking at. But do not use the tax assessed value as your guide.

Happy comping. Sincerely, Kristine

Assessment vs. Appraisal vs. FMV–Equity? - Posted by Nate

Posted by Nate on July 09, 2003 at 16:09:34:

I live in Western New York. 1st time homebuyer.

Does the assessed value, for tax purposes, of a home mean anything? I’ve read that this assessed value is 85-90% of the Fair Market Value.

Checking recent home sales, sometimes that holds true and other times it does not.

Here’s an example of a property I’m looking at:

County Assessed Value = $56,900
Asking Price = $32,000

The asking price is right in line with recent home sales in this good neighborhood. My confusion is this–Even I pay the asking price of $32,000 am I getting “instant equity?”

Thanks for your comments.