We're dipping our toe in the water pending a move to the Fairbanks area next year and doing some research on a multifamily in either the N.Pole or Fairbanks area. After doing a bit of research, it seems that a lot of folks are asking well above the assessed value, is that common in this market? I've been in other markets where selling prices were 50% over assessed and some markets where the assessed and sell price tracked very closely.
Running the numbers on the calculator sure didn't inspire much confidence for a cash on cash return at the asking prices as advertised!
Yes. It is common. We are a non-disclosure state.
It’s also common as the assessed value has almost nothing to do with market value. Some states assess at a percent of market value on purpose so they can eliminate the debates from homeowners saying their house isn’t worth what they’re being taxed on.
@Michael Rogers the tax assessors that I've had conversations with try to shoot for about 5-6% below market value as a nice balance of getting the most they can for taxes and not having owners argue about value. They can still vary wildly but this is what's most common.