Posted by Ronald * Starr(in No CA) on July 01, 2003 at 15:53:09:
Tonia-----------------
Call up the appraisers in the assessor’s office and ask them if there is any particular reason that the land values are so high.
Also, talk some real estate agents that specialize in that area.
I’d guess that the prices for houses justify a pretty high total assessed value, but the ages of the buildings suggest that the improvement part should be low–think of depreciated value. So the appraisers assign a lot of value to the land.
If you can find sales or listings of vacant parcels for sale, that will give you a better idea of the market value of the land alone.
Good Investing***********Ron Starr****************
What does this mean? - Posted by Tonia
Posted by Tonia on July 01, 2003 at 08:43:58:
I’m looking at a property in an older area. You can tell that some investors have been through rehabbing a few homes. The house that I’m looking at is a corner property with 2 attached lots giving a total of over 3 acres. The owner said that she had the tax assessor come out and appraised the property at $200K. A realtor wanted her to list for $250K. The house is old with an add-on. I researched tax records for that particular area (including a large abandoned home close by) and the land values were high (in my opinion). Her house showed building value plus 1/4 acre of $111K with the remainder of the value being in the land. Checking the immediate area, I found land value averaging $48K per acre. What does this mean when land is high in an old area. Does that mean that the area is about to go through some development or what? I usually based whether I buy or not mainly on the structure and location. Land is usually an afterthought.
I’d appreciate any and all opinions.
Thanx,
Tonia