Using tax assessment to determine buy offer price fo

[Akhil Kumar]

Hey Gurus,

want to know what you guys think about looking at property assessed value as the basis for making an offer (rental property investing) ? I have seen the asking price differ significantly from the assessed value in some cases, sometimes not so much. 

Has anyone used this strategy to make buy offers ? Would love to hear your experiences. 

Thanks in advance !

[Jeff Brower]

The city assessment has nothing to do with fair market value. I would not recommend this. A proper analysis will include comparable sales and current market analysis as that is what an appraiser will use to determine the after repair value of the home. My personal home assessment was 145k but the home was worth 85k. The appraisal came back at 85k and I was able to contest and have my tax assessment dropped which saved me a ton on my taxes.