The tax assessed value should not be used to determine the fair market value of a home. These numbers are inaccurate and most of the time outdated. You could ask the tax assessor when was the last time the house was assessed. Not that it should have any bearing on your evaluation of what the house is worth but if it was recent it might at least get you in the ballpark.
Like YOU said you need to get recent and nearby comparable sales. You might do an Internet search to see if the county you are looking in has its tax records online. I have two nearby counties online and one even allows me to look up comparable sales. Another way would be to establish a relationship with a Realtor and ask them to get you the comps. If you want access to the mls or multiple listing service you can sometimes become an affiliate member which means you don’t have to be a Realtor, appraiser, morgage broker, or whatever. Another way is to get the counties tax records on CD. This is available from a company that I have listed somewhere and you can also call the county assessor and ask them who does thiers.
I know making an offer on a piece of property involves many different things, the condition of the home is a big consideration. But today I was at my tax assessors office looking for the assessed value of a piece of property that is selling for $75k. The tax assessed value is $32k and the “real assessed value” is $52k. Can I base my offer on either of these figures? Why is the selling price so much higher than the “real assesed value” on file at the tax assessors office? Is that amount reliable in any way?? I am giving this a great deal of thought, but I remain lost. Another property is listed for $165k, the real value listed is only $142k. I really dont understand, and if anyone can shed some light on this for me, I’d love to hear from you.
One more question. I know that when you have a home appraised, they base that appraisal on a list of comparable homes sold in that area. My question is how do they get this list and is there anyway for me to have access to it or similar information?
You all have been great answering my questions before. I seldom get a chance to reply to those who reply to me, but I just want you to all know that I do appreciate all your help.
Thanks again
Lisa Vosburg
Re: How do you determine what to offer? - Posted by Eduardo (OR)
Posted by Eduardo (OR) on May 19, 2000 at 11:45:04:
Lisa–
Just a thought: I always figure out what my offer is going to be (using one or more of several different approaches). Then, and this is the important part, I knock off a few thousand dollars more. Recently I bought a great little rental house. I figured I would pay in the range 40-45 thousand for it (it was worth 15 thousand more than that). Then I knocked off a few thousand more for a starting offer (I was fully prepared to be turned down and to counter-offer up to my 40-45 thousand range) and offered $36,300. They accepted my low-ball offer at that price! Those who settle for nothing but the best often get it. --Eduardo
Re: How do you determine what to offer? - Posted by Scott (ATL)
Posted by Scott (ATL) on May 19, 2000 at 10:56:29:
Lisa,
Since my partner is a licensed Real Estate agent we get our comps from the local MLS. This information while not flawless is the most up to date. However, “most up to date” isn’t really the important part. I would suggest as did Leon that you try and work with a realtor(s). If you find a good one they can really help and if the deals they find are right their commission is well worth it!
Anyway, other alternatives include www.homegain.com and www.homeradar.com I believe Yahoo has sales information as well. My local paper provides recent sales online by zip code but trying to determine proximity is a pain. The recent sales from these services tend to be about 6 months or more behind the MLS information but it still gives you a pretty good idea of what homes in the area go for. The hardest part is determining what the after repair ?Fair Market Value? will be. This if highly subjective but you just have to look at the previous sales you found and the house you?re interested in and make a guess. Over time you?ll get better with this.
Like Leon said, the assessed value has little or nothing to do with the market value. I’ve seen properties sell for $100,000 more than their assessment, but right now I’m looking at one that is assessed at $53,000 but worth about $30,000.
‘Real’ value is how much you could buy it for, and how much you could resell it for. Recent market analysis gives you the closest estimate, but every house is different, every buyer and seller different.