Has anyone seen this.

Question

I am relatively new to REI but I have been watching some properties that are REO closely for the past few months thinking I might like to jump in the game on some duplexes.

I know that the tax appraisals rarely matches the actual value of a property however the properties I'm looking at are tax appraised between 35k to 40k.  I talked to the bank today and decided to search the local MLS and they are asking between 108k to 110k for these properties.  Like I said I know that the property value and the tax appraisal are not usually the same but I've never seen such a large gap in price when it comes to these two numbers.  Any ideas?

Steve Babiak · Answer

Again, that is another indicator of what I mentioned in my prior post.  The listing agent is looking to find the buyer so that his brokerage gets both sides of the commission.  Go directly to the listing agent to buy this one, if it is your intention to buy it!

Steve Babiak · Answer

There isn't a sign in the yard because - and this is just my guess - the listing agent is shopping it to their own buyers to collect both sides of the commission.  Once they have exhausted their list of buyers without a nibble, then you might see a sign.

I can tell you there was no sign on the property that you see mentioned in my status line ...

Peter Giardini · Answer

Marcus,  almost universally the tax assessments and the actual value of the property have nothing to do with one another.

It is best to only use the comparables (similar property within 1/4 mile of the subject property and sales within the last 6 months) to evaluate the value and then make your offer price based on those comps and of course the cost of repairs, etc.

Best of luck!

Account Closed · Answer

incidentally I also found it amusing.  The reason I called the bank about the properties was because I wanted to know who the agent was that was representing them on the properties.  The gentle informed me that Mr. X with Real Estate X company was handling these properties.  I told him thank you for the information I will be in contact with them, he asked why I hadn't just got the information off the sign in the yard.  When I state "their wasn't a sign on the properties" he did not sound very pleased.

Account Closed · Answer

Mr. Giadini I completely agree with that statement, however I always have liked to use the tax website to gain any information I can about the properties.  In my area I have always been impressed that the values were close to the comparables in the area.  Usually they are about 10k to 15k off, however I've never seen a 70k difference before.

Account Closed · Answer

I don't know because I looked at the MLS and the properties aren't even listed on MLS by the guy that he said is handling the property.  They are being handled by a newer agent that I know.  They are in the same agency though.