BiggerPockets

Hi Robert, assessed values vary from area to area. Some offices are automated and on top of it while there are still some in transition to the computer age. Vaulations appear to be high since they are based on historical data as they valuations are updated everyother year to every four years in some places. However, they should be in the ball park.

You said there are no comps. Is this for a buy and hold? Otherwise, if you seel it and the buyer needs financing, how are they going to get comps if you can"t? Where are you looking for comps, do you have access to sold listings? If there aren't any, you'll have a problem selling too! Bill

Originally posted by Robert Miller

I usually get comps from zillow or a similar site.I also search the County Records for comps.I did find 3 sold properties in the area,but they were all smaller than the property I`m looking at.2 sold for over $200k and 1 sold for around $160k.the 2 higher ones were less Beds and Baths and less sq.ft.they were each 3 beds and 1 or 2 baths.The one I`m looking into is 6 beds 3 baths with an est. value of $292k.I know I could resell easily for atleast $215k and I can get it for $85k.

GREAT! GO FOR IT! Good luck with your comps, your judgment can be the best guide. Bill

Assessors value is limited to how good a county is in picking up on new construction or repair improvement values as indicated by Bill. It is difficult for any county to assess the deteriation value of homeowners who do not take care of their properties which is just one reason that the assessed value is usually higher that the actual value. Plus the counties do not have enough staff to do an good evaluation each year and must rely upon market trends and not the actual property conditions.

This is why most appeals to property values actually are approved by counties. But Zillow is actually worse!!!!!

Searching the actual county records yourself for all sales withing the county will give you more than just 3 sales, but finding some close by and similar to yours may prove challanging. All realtor listing sales will be there plus more sales.

It is work, but might prove useful to you.

Remember, assessors usually use mass appraisal to assess property. Appraisers do single property appraisals. It is the assessor's job to value ALL property in their county/parish. So, through the years, in order to maintain equity in assessments, they mass appraise instead the the impossible, valuing all of the property each year or even every 4 years. This is why you'll find that they are slightly higher in some areas or slightly lower in others. They are, however, a great source for sales information because this is the info they use to re-appraise when they do, and also, transferring the names of property owners based on sales throughout the year. They keep the sales data until it is time to re-appraise.

Just like there is a difference between an "explaination" and an "excuse," there are differences between an "assessment," an "appraisal" and "market value."

In most neighborhoods (perhaps not so much in newer developments), properties selling at or near "assessed" value are simply a fluke, and as anyone should know today, what a buyer and seller may agree to, in an arms length transaction has little to do with the "opinion" that might be rendered by an appraiser.

Assigning a $/sf to a property based upon other properties sales prices is equally irrational. Like saying, hey, all the houses in the neighborhood are created equal, right?

Assessed value is a number, assigned by applying a formula to the existing value, largely based upon sales of other nearby properties. It can, to some extent, be reset when a house sells, but tends to get out of whack the longer a property is held. It becomes the basis for computing the property tax for each property. Has nothing to do with actual market value for any individual property, what improvements may have occured (or conversely, not ever occured).

Appraised value is an opinion (with all the caveats of an opinion, as in, everyone has one), ordered by the bank (but paid for by the buyer) for the purpose of passifying the bank that they're not lending too much money.

Neither have much to do with what one person will pay for a particular, specific property.

Why am I ranting?

The wife and I built a house. Told the builder to include only shag carpet, vinyl floors and bare bulb light fixtures in his bid (which determined our construction loan). Bought the land for $53k cash. Construction contract (and loan) was for $250K. After construction, we got an "assessed" value of $320K. Jeez, $17K, or 6% over our "cost." Sound like a formula? But, we had dumped another $80K of our own money into upgrades during construction, and when refinancing out of the construction loan, it "appraised" at $420K.

Having the low assessment was nice for the 8 years we owned that house. It sure sucked, however, when we went to sell and every freaking buyer kept saying, "but, it's only assessed at...." :shoot:

Sorry, it's a sore spot.