Is a tax assement the same as aporail

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Is a tax assement the same as aporail

Daniel Coffin
Member since 2023 · 16 posts · 6 votes

If a property is assessed at a certain price for taxes is that a good price for property should you pay less or more I know you probably ant a low assessment so you can rehab it and then get a higher appraisal are they the same please explain??

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  • Karl McGarvey
    Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    3y

    Tax Assessments are not good indicators of market value. Each market is different. To get a good market value you can mostly easily work with a local real estate agent to run a CMA and give you an approximate value

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  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    Tax assessments are the town/city’s estimate for what the property is worth and they charge taxes based on that. I don’t know about you but I don’t let the city into my properties very often because I don’t want them to see improvements and increase my assessment/taxes. So I think it’s fair to assume that the assessment is based off of old/incomplete information in most markets. 

    An appraisal is when someone assesses your property based on its current condition. Normally an appraiser will walk the property, request access to all units, and collect current financial information. All of which is used to help them establish and appraised value of the property at the time the appraisal is performed. 

    In our market the assessed value really doesn’t mean anything. Most properties end up trading at 120% - 130% of the assessed value which to me tells me they’re 20-30% off and not a reliable indicator of value. I do know some investors that try to buy things at assessed value assuming that 20-30% ratio holds true but without more information I associate that strategy more with gambling not so much investing. 

    I hope this helps,

    Best,

    Jon 

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    There are many properties that are worth more than twice their property tax value. Counties did this about 10-15 years ago to get rid of the property valuation fight they used to have every year. They halved the value and doubled the tax rate.  

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  • Ryan Klamer
    Real Estate Agent · Kernersville · Member since 2023 · 17 posts · 6 votes
    3y

    Great question! Easiest way to think of it is this:

    Appraisal- is how much the home itself is worth

    Assessed- is how much the home is being taxed for

    For example a home may be appraised at $200,000

    But it may be assessed at 80% of appraised valued meaning it would be assessed at: $160,000

    From then on you would be taxed based on your county and city taxes if applicable.

    Hoped this helped

    Thanks!

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