what is land and improvement assessment real estate? please help.

8 Replies

what is land and improvement assessment real estate?

I just got an MLS list of a couple properties from my realtor, but there are a couple of things that I don't understand, for example, LAND ASSESSMENT AND PROPERTY ASSESSMENT. the price for one of the house is 289,000 and that's the part I don't understand........


Taxes / Year:
$5,358 / 2017


Assessment:$27,040

Land Assessment:10,520

Improvement Asmt:16,520

please help. thank you.

   

In PA, assessed value has to be multiplied by a leveling factor set by the PA Department of Revenue to even be in the ballpark of what the market price is, so in most cases just ignore those for the purpose of setting a property value. If you were to buy a rental property, the value of the land on residential property isn't depreciated for income tax purposes, so you would be able to use the land value there to back out the part that does not factor into depreciation. How to do that properly should be discussed with your accountant.

The tax assessed value is used to set your real estate taxes, in case you are wondering. 

In Bucks County the Common Level Ratio for county wide assessments is 9.17;  so you add the land and improvement assessments which is $27, 040 and you multiply that by the common level ratio and get $247,956.80, which is the market value as determined by the Bucks county Assessment Office.  This may be higher, lower or the same are what the market will pay for the property.  If the property is really worth the $289,000 asking price then that would mean that your Municipal, County and School taxes would be slightly lower than the real market value. (about 14% lower)

any idea any best place to buy a primary residence in bucks county with a $300k budjet.

Depends what you're looking for in an investment & what areas of Bucks you are most comfortable with. I have about 20 properties in Bucks, know certain towns very well and I'm also a realtor.

Bensalem, Doylestown, and part of feasterville. I know I can find something in Levittown and Bristol but I don't really like the neighborhood. 

@ gregory hoban. Maybe you can send me a list of the houses you have for sale

I mostly rep buyers, the properties I mentioned are not listings, they're our personal investments, mostly in Newtown. Out of the three there, I'd say Doylestown based off growth rates and the issue of perpetually increasing tax burden in the other two. If you decide to change agents, let me know.

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