Pulling comps if you already have an assessment value
Why do I need to pull comps on these properties I'm finding (for deal analysis) if I am also finding assessment values on them?? I have been analyzing deals and I use our counties real property search to look up the current assessment (what they get taxed on). Wouldn't that be the number to use for the ARV granted you're not making any major changes such as adding a bath or bedroom to it?? Sorry if it seems trivial.
@Nichole Wall county assessments, at least what I have found are very rarely correct. You need to look up comps to see what people are actually willing to pay for the properties. Try it out, find current assessments for a property type and they find comps. Look to see how they match up. That is why a lot of sellers always think their property is worth more than it really is.
Okay, thank you!!
in my area, tax assessments are only revalued every eight years. A LOT can change in eight years. You want to know market value of the home, not assessed value.
It's kind of like getting your engagement ring appraised for insurance. The appraiser gives you some huge number, but if you ever get a divorce, there is no way you will be able to sell it on the open market for even half that.
@Nichole Wall - I agree with what the other ladies have said. Also add that the county assessment does not take into consideration the condition of the house, or the updates that have been done. I've sold houses for twice the amount of what the county assessed them for....and also, don't bother with zillow's numbers either. You can however, use zillow as a source for "nearby houses sold", and find some comps that way. Your best bet is a Realtor pulling comps for you so you can have pictures and know condition of the house, etc.
