I live in a rural area where you can't ever find true comparable homes (nothing here is cookie-cutter and lot size varies significantly). I have had the thought to figure out what a home should cost by looking at sold home prices compared to their tax value, figuring out the average percent over tax value the properties sold for, then use that percentage to figure out/justify what a current for sale home should be.
Is this method flawed or a legitimate way to figure out what a property is worth or justify an offer to a seller?
Can you appraise houses by what their price should be over tax value?
byu/BackWaterHobo inRealEstate
Posted by BackWaterHobo
8 Comments
It really depends on how property tax appraisals are done. This would be an idiotic endeavor near me.
This is not the way.
In a rural area you have to rely on comps the same way you would anywhere else. If there is only one recent sale then thats your starting point.
Yes, its a badly flawed theory on value.
Tax value is from an assessment calculation that varies by jurisdiction. Appraisal value come from sales comps. Do not use assessed value to get market value.
No
Yes. Tax assessment and appraised value are two totally different things. In 28 years of mortgage lending I have never seen those numbers be even remotely close.
Op,
I used to do that years ago and I found it a helpful guide.
Keep in mind that each area will be different to some degree
No.