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Assessment is an estimate, not accurate sales price |
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Category: Business Strategies Current Grade: B Total Views: 603 Member Comments: 1 |
Posted on: 04/11/2008 Posted by: Ryan Ely Blog Points: 91 View all blogs >> |
A tax assessment is only an estimate, especially if area hasn’t been reassessed in a few years and shouldn’t be used as a proper price. And then some areas don’t assess at full market value.
Find out what the competing properties are listed for, what have buyers have been paying to live in a certain neighborhood, how long has the place been on the market and how motivated are the sellers for a quick deal and of course good comps. Consider those factors not the assessed value.
In some locations the formula is intentionally set to produce something other than the market value. In other locations the assessed value is by design set to track or closely approximate the market value. You need to look at the local formula and rules.
AS Ryan notes learning to use market comps (real sales to real people without special terms and conditions) is the only way to consistently estimate the value of a residential property.
John Corey