When Figuring Out an Offer to the Seller

Question

Ok, from my understanding it is necessary to use the tax assessed value to help make an offer to the buyer. But I was told by another wholesaler that the assessed value can sometimes be wrong and the house may be worth more due to upgrades done to the house  that were not included in the appraisal.

Is the true value in the combination of both? Do I still need to incorporate comps into the equation? Do I just need to get an appraisal done when I'm interested in wholesaling a house?

Account Closed · Answer

@Brittaney Woods - you are asking some really basic questions which is good, but you are in for a long learning curve doing this on your own.

Consider acting as a bird dog for the dominant wholesaler in your market.  You will learn and earn while you do it.

If you don't want to do that, than consider investing in training.  If you think training is costly, consider how much more ignorance will cost you.

You can find a lot of people that promote themselves on this site.  I know one that doesn't who trained me.  He paid for himself in 6 weeks.  If you are interested, message me.

Chris Boyd · Answer

I haven't,  but I'll look into it!

Brittaney Woods · Answer

Do any of you use findmycomps.com?

Chris Boyd · Answer

In my experience, the assessed value is seldom accurate. I recommend comps and appraisal as a last resort. ( just so you aren't putting more money out there)

Roland Paicely · Answer

The assessed value is simply more information to help you determine what the property is worth.  However, comps from an agent are probably the most accurate.  There should be some agents that will do this for free.  Touch base with some at your local REIA.

Also, with an assessed value the house could be worth less as well as more.  Comps from an agent greatly increases your chances of getting an accurate value.

Brie Schmidt · Answer

In my area we never used the tax assessed value - we only use comps as that is what an agent/appraiser/buyer/seller would use