I have a client who just sold her business and the office/house she worked out of is in bad shape. It is in a up and coming area that has " beautification" going on around the neighborhood. The home is valued under the tax assessment county site for $125k, homes selling for $225-275k and I know it needs repairs both in and out. This might be my " pocket listing" but will the Tax assessor info a good source to go by as far as the value of the home? Or will it make sense to get it under contract and " wholesale " it?
Tax assessment value has No relation to market value, for a number of reasons.
@Luis Rodriguez Jr Assessed value is only useful for determining the tax bill. An appraisal (often confused with an assessment) should get you much closer to the true market value.
BTW - if you're a member of NAR, pocket listings are no longer allowed due to the new "clear co-operation" policy. You're required to put the property on MLS within 24 hours of you starting to market it. There are few exceptions.
If it's really in the path of progress, the best opportunity is most likely to buy, rehab and resell.
As Wayne said, tax valuation or assessment has nothing to do with value that someone would pay. Its just the way the county assesses how much property tax you should pay!
Thanks for all the input. I am not a part (NAR) of anything just yet. I do see this as a flip and not a buy/hold. I will be meeting with her later today and will get more info on the property.