Hi guys, I am new to all this and am analyzing deals just for experience purposes. The following is not for an offer but just for me to learn. I found this property listed for foreclosure at $148,000 but it appears the market value is only $109,845. Why is a foreclosure so much higher in price? Also in the sales history, what does qualified or unqualified mean? What is the difference between Vacant or Improved? And lastly , I do not understand hte sales history sale price. Clearly 17 million was not paid, so what are these 3 numbers then? Was it really sold in 2014 for $83k and back in 2004 sold for $139k? Any help understanding all this would be greatly appreciated.
To further this, I found another property in the same neighborhood listed as FSBO, at $230,000. Yet this same county assessors page says the market value is only $111,000. Is this normal to have the market value at 50% of the asking price?
If this is the same as my area then Qualified means an actual sale transaction and Unqualified is not an actual sales transaction but something like a warranty deed that was filed. Most of the unqualified in my area I have seen as some sort of deed that was issued and filed.
From the description this is a townhouse/villa that generally results to a multi-sale. There are also sub-divisions that are SFR(single family residential) that can also be listed as multi-sale when the area is built by a developer. Since I don't see those particular terms for the 2001 sale, I would guess this was the beginning of the development for these units/property. This is what I would guess the 17million represents and may/would be listed on every property record in this development.
You may or may not always see Market and Assessed value be the same figure. At least in my area and I would think in others as well.
I googled these for simplistic definitions:
Assessed Value - The dollar value assigned to a property for purposes of measuring applicable taxes.
Market Value - The price an asset would fetch in the marketplace.
The assessed is done by the local municipality and they use what ever formulas to achieve these numbers. It's an appraisal of sorts just like paying for an appraisal on an individuals home. In the case of the local municipality, they use the total sales for an area so I'm told.
For investors we want this to be low as it affects what we pay for taxes that bite into the cash flow. As an owner we would want it to also be low but because of exemptions, we already get a reduced value that the taxes are based upon. An exemption is given to owner occupants and can vary by municipality. For instance, in my area we have an exemption for veterans. However, all home owners that are owner occupant will receive an exemption that is called homestead. From what I have seen, exemptions only apply to owner occupancy.
The FSBO is an owner who thinks their property is worth that much. Comparable sales (comps) will dictate otherwise and that owner will likely lower the price over time.
As far as the market value, I couldn't say. My area only lists 'assessed' value on the appraisers web site so 'market' is not included. It may be they are making an attempt to list the 'market' value along with what their 'assessed' value is.
The links under book and page on the picture you displayed should navigate you to other pages that will be the actual document. On that document you will see just what transaction occurred. Since the $83k is unqualified, you would need to look at the associated document for that entry.
Hope this helps....
@Daria B. Thank you so much! That really helps! So I looked into it more and you were right, the community was actually built in 2001 and all the properties have that $17 million listed there, which I am guessing was the cost of the whole development? I also clicked on the blue book / page numbers and the documents that came up as you said were mostly warranty deeds (for the $17m price and $139k price) and the other was a title certificate. However in the file there are no prices in any of those documents which begs the question:
A unqualified certificate title for $83,400 means what exactly?
A qualified warranty deed for $139,000 means what exactly? That a sale was placed for this price for a deed? (I thought you usually get the title when you purchase?)
And lastly, I am still confused on the column that has "vacant / improved" ... The opposite of vacant to me is occupied so I am clueless as to why the word improved is there.
Thanks again and sorry for the simple questions, but gotta start somewhere! :)
If you click on that book/page link I suspect they are navigating you to another site. In my case it would be the clerk public site. Once on that site I can do searches using name. Look at yours to see if you can do the same. If so, you can narrow down all the documents associated with the property you are looking at. The mortgage will have the amount paid for and what the terms are like due in a certain yr. I usually subtract that year from the year of the note to see fin its a 15 or 30 yr or some other yr like 20.
The unqualified of $83k is a mystery to me. You can call the appraiser office and they can tell you what that means. I find they are a wealth of knowledge and are more than willing to help. I call and tell them I am an investor and what I am trying to understand and what I am looking for.
What is under vacant/improved? If there is a house I think it would say improved---not completely sure.
All the documents in Florida have the doc stamp and the filing fee amount stamped on the first page of the document.
Let me know of you can do further searches after clicking the book/page link.
I have more information for you.
I called my appraiser office and asked about the unqualified designation that has dollar amounts of $100 or more.
What was explained to me:
1-if it's an arms-length transaction (I asked what this was and they said a transaction between a willing buying and seller) the it's considered a qualified sale.
2-an unqualified designation is one that could be a parent selling to a child so the amount seen is not what a true market price would be.
May have more later...
A CT (certificate of title) is what someone gets at a foreclosure auction, which is what that $83k sale was, and why it was an "unqualified" sale. The "vacant" means the Land was vacant, when the developer bought the raw land to develop. Qualified is an open market, arms length transaction.
Thanks @Wayne Brooks that clears up a lot. The appraiser didn't mention the foreclosure status.
Originally posted by @Wayne Brooks :
A CT (certificate of title) is what someone gets at a foreclosure auction, which is what that $83k sale was, and why it was an "unqualified" sale.
So this means that the property was purchased for $83k at a foreclosure auction?
@Daria B. Thanks after clicking the book/page I am linked to the clerk of court and I can see all the documents and see the mortgage amount and term. This is starting to make sense.