Assessor vs sell price

7 Replies

Driving for dollars found some great fourplex but off market and I would like to contact owner or send yellow letters.  New to this, but is the assessor price quote relative to potential selling price besides what ever can be negotiated?. 

Example: fourplex

Assessor site: 207K

I am assuming if sold it will be around price or under depending how distressed?.

@Abou C. I usually don't go by the assessed value. They are usually higher then FMV. Have you comped the property out by pulling recently sold properties?

Carolina NA hello Carolina, not yet found like 10 fourplex around my area in providence, and so far just looked at assessor website. But tomorrow will start looking at like comps properties.  Properties I viewed are in a great location but they need some tlc from the outside and I will assume as well as inside. 

question: Can you search up mortgage on the property or taxes of the property? 

I now some paid sites give you mortgage info.  I can not think of the names right now.  The taxes can be seen on some county websites.  Google your county treasurer and see if they have it available. 

Abou, you can calculate the property taxes on a property in Rhode Island by looking up the assessed value (on the city/town assessor page) and then dividing by 1000 and multiplying by "rate" and "% of value" on this tax rates page.

For example, if a residential property is assessed at $250,000 in Cranston, then it's 250,000 * 22.84/1000 (tax rate) * 100% (% of assessed value that is taxed) = $5710/year or 475 that would need to be set aside each month.

Originally posted by @Abou C. :

Driving for dollars found some great fourplex but off market and I would like to contact owner or send yellow letters.  New to this, but is the assessor price quote relative to potential selling price besides what ever can be negotiated?. 

I am assuming if sold it will be around price or under depending how distressed?.

Assessed value is only very loosely correlated with market value. Lately I have been finding it a little under market values, but in the past it's been higher. I only mention it in a negotiation if it helps me (i.e., if assessed value is below market value and I hope the seller puts more stock in assessed value as a measure of market value than I do).

The best way to determine market value is to look at similar properties ("comparable" properties aka "comps") that have sold recently in the same area, ideally within the last 3 months and ideally 3 comps. Be very cautious with only 2 comps, and never assume you can get an accurate value from only 1 comp.

You can try to get an approximation of market value by looking at sites like Trulia and Zillow but the problem is those sites often don't show truly comparable properties - they are often not too similar to the one you are trying to value, are very old, and/or aren't really in the same area (even though they might be within X miles, neighborhood boundaries really do matter - 1 mile in one direction doesn't necessarily equal 1 mile in the opposite direction!).

Similarly you can try to approximate market value by using riliving.com to look at "asking" prices for similar properties. The good thing with that is that you can do a better narrowing-down as far as similar property and similar area. But the big issue is that you'll only see asking prices, not sold prices.

Anyone can ask too much for a property, in fact it's quite common for people to "shoot for the moon" when they first list a property and hope some sucker "investor" will come along and over-pay for their property.

So asking prices aren't actually too helpful, other than if you're planning to rehab a property and put it back on the market and just get a sense of what the competition is like. 

But don't use asking prices for gauging market value. The only way to determine market value (and even that is a range - which is why appraisers call it an "opinion of [market] value") is to find similar properties in the same area that have sold recently, and where buyers and sellers were transacting freely (what they call an "arms length transaction"), and where the buyers was actually willing to plunk down their hard-earned cash to buy the properties at a certain price.

@Anthony Thompson wow, great information Anthony.  Question I would some great but in need of TLC or updated form outside and I am assuming inside as well. Like you told us we want want something that we would have to guy out as our first property but something that needs some lip stick. 

Using RIliving and MLS we could not have 4 units only 3, but found some off market and not for sale four units around an area we are interested in. How should Luis and I go about contacting once we figure out all the details and price of the property?. Using the providence assessors website we were able to see owner and home address as well, but have no way of figuring out how to acquire it from them!.

@Abou C.

I am a Realtor here in RI and I would be happy to help you with this property. I can find some comparable properties and find a good price to offer. I can also help you find contact information on the seller.

Please feel free to send me a private message and let me know how I can help you.

Thank you

Marc

Join the Largest Real Estate Investing Community

Basic membership is free, forever.