Tax assessor Appraisals: Fact or Fiction?

Question

I found a deal for a SFH that is selling for $56,900. 3/2 and about 1400 sqft. On the tax assessor website, it says....

Land value: 20,000

Improvement Value: 72,000

Total: 92,000

Good neighborhood

Rent is about $840

Built in 1995

Owner even willing to do owner financing for 20% DP

(Which I have)

My question is, how accurate are the tax assessor “Appraised Values” on the county Assessor websites?

Dan LaFontaine · Answer

@Breelon Bryant for public disclosure purposes... Property tax information is public data.

Breelon Bryant · Answer

@Rod Hanks thank you. I didnt know they were that far off so this helps alot

Breelon Bryant · Answer

@Dan LaFontaine yea I knew that I needed to get an ARV but I was just looking at the taxes while analyzing this deal and thought about how off was it compared to a real ARV.

If its that far off from a real appraisal, whats the reason they post it on the tax assessment of a property?

Dan LaFontaine · Answer

@Breelon Bryant they are usually pretty far off of market value. Even if it’s a recent assessment. As for Zillow, don’t trust the Zestimate either. There are some sub maker keys and areas where it’s pretty close, say in relatively homogenous neighborhoods with lots of data points available, but in general there are far too many local market nuances and recent trends that the algorithm doesn’t capture. Sure use it as a directional clue, but find comps yourself and build your own estimate, or work with an agent you trust.

Rod Hanks · Answer

Tax site values are not accurate comps. Use Zillow zestimate and take that with a grain of salt. Only true comps are from a realtor MLS

Tax assessor Appraisals: Fact or Fiction?

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