ok so i just came upon a website that i thought was useful to me to asses the value of a property. oviously the best way to find out the value is the neighboring properties and thier recent sell price. so, i began searching properties and came upon zillow.com.
and although, i was wowwed by the "big brother" widget, i must ask what is the difference between "tax asseed value" as it states in zillow, vs. and the value of a property or are they the same thing? was a little confused by that term.
any help would be awesome. also, if anyone knows another website like zillow.com and is free, by all means share!
Tax accessed value is merely the value that the state or county determines to tax the property at. In theory, it is supposed to be an accurate estimate of the current value, but in my neck of the woods it is normally not accurate (at least 10% off if not more)
should I be happy if I buy a property for 187k and the tax assessed value is 230k?
Or just don't worry about the tax assessed value?
where is your neck of the woods in case i happen to invest there?
so, i guess it would be good to put the %10 upestimate when determining the prop. value , and of course aiding negotiations in future endeavors. i love it! its such a numbers game, and kinda helps that im asian.
Jimmy, well I would say it matters what your exit strategy is. If you are keeping the property long term, then I would go down to the tax office and protest the tax value as inaccurate. If they lower to what you purchased it for then it will save you that much more in taxes.
Now if you are looking to resell the property any time soon then you might think about just leaving it. You can use the tax value as negotiating leverage. Many investors will give the tax value atleast some credence, so it will work in your favor.
Charlie, my neck of the woods is Amarillo, Texas. It is in the northern part of the Texas panhandle.
definitely, it doesn't matter if you have a property worth 230,000 and you're buying it for a dollar...well maybe not that far below market :D - but what makes a property a good prospect is if it matches your
this is made up of many different factors.
Your exit strategy (or goal of purchase) is the most important aspect for your investment approach because it establishes your boundries and lets you know exactly where you stand and where you want to go!