Tax Assesed Valuation
I am currently working on a preforeclosure that the current tax assesed value is about 70,000 and the bank is strongly thinking of accepting my offer of 40,000. What do you guys think of tax assessed value? Is it anywhere in the ballpark. I can't find any comps for this house in the neighborhood because it has 5 bedrooms and two baths and is appoximately 3,000 sqft livable in decent condition. I think this house is worth far more than its assessed value but am just guessing. The house next door just had a CMA on it of 120,000 and its a much smaller 3/1. Just wanted to know your thoughts on it.
Hi naxtell,
Generally the Accessed value is a little softer than the actual market value. But this is certainly no way to get a FMV for buying consideration.
A good thought would be to call a realtor and ask them to email you ro fax you some comps for that neighborhood, or better yet, have them do a CMA on that house!
Best of Success!
BAMZ
If things in the neighborhood have sold at all, you've probably got some kind of reasonable comps.
Take a look at the curve of house prices - at least around here, when you go over three bedrooms the jumps in value get much smaller. Sales of 4 and 3 bedroom houses are useful data points.
I give little weight to tax values. Sometimes they are close and sometimes they are way off. I recently looked at a foreclosure that was assessed at something in the $70k's. The bank wanted $75k originally. After many months and price reductions the house finally sold when it was marked down to $25k. The bank did have a offer of $35k that they had passed up when the property was listed higher.