Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Wholesaling
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 10 years ago on . Most recent reply

User Stats

1,158
Posts
655
Votes
John Horner
  • Flipper/Rehabber
  • Columbus, OH
655
Votes |
1,158
Posts

Don't you marketers hate the auditors assessment?

John Horner
  • Flipper/Rehabber
  • Columbus, OH
Posted

I am going to lose it if I hear another seller tell me they want $65,000 for their $15,000 property because that what the auditor said it was worse.

Nothing in the neighborhood has sold for more than $30k in the last 3 years, yet the auditor values every house in the neighborhood at $55k and above.

Although it is pretty funny when they say "Well that's what Clarence Mingo said it was worth"...  Clarence Mingo is our auditor, but they say it like they hired this professional to come assess their property. Lol

  • John Horner
  • Most Popular Reply

    User Stats

    21,918
    Posts
    12,880
    Votes
    Bill Gulley#3 Guru, Book, & Course Reviews Contributor
    • Investor, Entrepreneur, Educator
    • Springfield, MO
    12,880
    Votes |
    21,918
    Posts
    Bill Gulley#3 Guru, Book, & Course Reviews Contributor
    • Investor, Entrepreneur, Educator
    • Springfield, MO
    Replied

    Tax` assessments can have little to do with market value, each are arrived at differently.

    Some areas assess taxes based on sales, sales are public and thereafter states usually dictate inflation rates to be followed, sold for X dollars 5 years ago, plus inflation yields an assessment, these may be close to market.

    Assessments are generally made on what is called a "block assessment" or "block valuation". These look more to valuations based on average square footage, land size, age and compared to larger population sizes of housing inventory. They aren't based on an individual property valuation like an appraisal of an estimate of market value. A $300K home in the same block as a 150K home can effect the assessment of both properties as averages are utilized.

    Market values are found as to a specific property compared to similar properties that have sold. It's apples and oranges.

    Here, assessed values are about 20% lower than market generally, but you can have a property that is in poor condition or has other influences to value that can have a lower market value than its assessed valuation.

    Valuations can be challenged and proving market values by an appraisal can require an assessment to be changed under state law. We certainly use those to have assessments lowered, never heard of anyone asking for a higher assessment!  LOL  :) 

    Loading replies...