Short Term Rental Purchase Prices

[Connor Washington]

I am curious to get your input on purchase prices in the Emerald Coast area. I have been looking at some condos along the beach area and I have been seeing that the purchase price is double the price of what the property tax value says the condo is worth. I know that the tax accessors office value is not what the property can sell for, but it seems like double the tax property value is a lot. One condo in particular was sold for ~$375,000 in 2018 and is now on the market for ~$700,000 yet the tax office appraises the property at ~$325,000 as of 2020 tax values. 

I would love to hear your input on if this is normal to see, or if the purchasing prices are getting out of hand.

[Joe Splitrock]

Originally posted by @Connor Washington:

I am curious to get your input on purchase prices in the Emerald Coast area. I have been looking at some condos along the beach area and I have been seeing that the purchase price is double the price of what the property tax value says the condo is worth. I know that the tax accessors office value is not what the property can sell for, but it seems like double the tax property value is a lot. One condo in particular was sold for ~$375,000 in 2018 and is now on the market for ~$700,000 yet the tax office appraises the property at ~$325,000 as of 2020 tax values. 

I would love to hear your input on if this is normal to see, or if the purchasing prices are getting out of hand.

 Tax value is always lower than market value in every location. This gap may seem larger than normal, but it could be that taxes have not caught up yet.