Tax Value Vs MLS Or Some FSBO
Wow, ok I was just looking/calling up some homes I saw today FSBO and MLS listings in my area.
For example a home in my neighborhood FSBO the tax assessed value is $67880 Whne I called the owner today he told me he was asking $109,000 (He was a contractor obviously because he was telling me about all the rehabbing he was putting into it, and what will be done in the next week) Back to the topic. In the courses Ive read I have always heard the tax assesed value is usually around 10% less than Market Value.
Wow this seems to be a bit more than that, the MLS listing wasn't any better.
Is it like this in all areas? Is this a good sign, maybe property in my area is appreciating? Is this just another case of everyone thinking their 3bd/2ba is a Royal Mansion?
JB
I asked a realtor the same question and their response was that since most tax records are updated every few years, they may not reflect the current value of a particular home. Can you find out what year the home was last appraised?
I guess the best indication of a home value is comparitive sales in the same area. Are the other houses in that area going for 109K as well? If not, I would use the tax assessed value as a bargaining tool.
Another thing to note is that some people do not report upgrades to the county in order to limit their tax bill. So the county might have it recorded as a 3BD/1.5BA when the owner has actually made it into a 4BD/2.5BA.
Hope this helps.
JS
In my area if you buy a house cheap you would take the proof to the tax court. This would lower the assessment for taxes. Once the house is rehabbed it could be off by 10's of thousands of dollars. The best way I've found was looking at the house and seeing what similar houses sold for in the last 3 months within one mile.
Lori
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