Tax accessed vs actual value??

Discussion in 'Homesteading Questions' started by nans31, Mar 4, 2005.

  1. nans31

    nans31 Well-Known Member

    Messages:
    186
    Joined:
    Jul 8, 2002
    Location:
    Alaska
    The home/property next me went up for sale. It is 2 tax lots. One is 4.46 acres that has home, lg shop tax accessed at 117,800. Across the road is tidal land that is accessed at 400.00...... The asking price is 285,000! Which is very, very steep for this area. Is there a standard way of looking at the AV and getting an idea of what it is really worth? The owners daughter is the listing agent BTW.
    nan
     
  2. SteveD(TX)

    SteveD(TX) Well-Known Member

    Messages:
    5,373
    Joined:
    May 14, 2002
    In most states, the assessed value is supposed to be actual market value. But as an appraiser and property tax consultant in the business for more than 20 years, the answer to your question is no.
     

  3. diane

    diane Well-Known Member

    Messages:
    1,983
    Joined:
    May 4, 2002
    Location:
    South Central Michigan
    I have to agree with Steve. Ideally the answer would be yes......but it just isn't so. How many acres are in the piece across the street?
     
  4. Peace n Quiet

    Peace n Quiet Well-Known Member Supporter

    Messages:
    1,166
    Joined:
    Jun 16, 2003
    Location:
    Pa
    Your county's assessment office can tell you what percentage of total value is the assessed value.
    Here in my county in Pa, we have not reassessed since 1994. So, our total values reflect those of a base year of 1994. They are NOT current year values.
    If you want another thought on the value of the property, try contacting a buyer's agent and ask their thoughts on the asking price.
     
  5. Maura

    Maura Well-Known Member Supporter

    Messages:
    15,981
    Joined:
    Jun 6, 2004
    Location:
    Michigan's thumb
    If you have a really good assessor, one that keeps track of market values, the assessed value will pretty much reflect the market value (or in Michigan, half the market value) within a certain time period. They look for trends. So the AV may fairly reflect last year's value, or the year before's. It will be interesting to see if the expensive property's assessment skyrockets once it is sold.

    Value can change depending on how the land is classified. For instance, this swamp, classified in Ag, is practically worthless because you can't farm it, though it may be valuable to surrounding farmland as a drain basin. Put into Residential, the value is much higher. If this type of property is selling for residential or recrational useage, your assessor needs to get busy.
     
  6. Hoop

    Hoop Well-Known Member

    Messages:
    799
    Joined:
    Jan 1, 2003
    Location:
    Northern Wisconsin
    Assessed at 117K with a 285K asking price. This goes to show you that assessed value means next to nothing. For that matter, asking price means next to nothing either. Sometimes, the asking price is realistic, quite often its a fishing expedition.

    Realtors are quite often closer to "fair market value" reality than assessors.

    In my township, assessed value is roughly 50% of fair market value. In my mothers township, many of the lake properties are assessed at 120% of fair market value.

    In this day & age of rapidly escalating property prices.....todays outrageous asking price is tomorrows bargain.
     
  7. nans31

    nans31 Well-Known Member

    Messages:
    186
    Joined:
    Jul 8, 2002
    Location:
    Alaska
    It boarders the Columbia River. Is about 400 ft from road to river, I'd estimate about half an acre.


     
  8. Beeman

    Beeman Well-Known Member

    Messages:
    6,977
    Joined:
    Dec 28, 2002
    Location:
    East TN
    Just think how much your assesment will go up if it sells for that price.
     
  9. vickinell

    vickinell Well-Known Member

    Messages:
    195
    Joined:
    Oct 10, 2003
    Location:
    Texas
    When I worked at a real estate place as an office worker, I had a real estate agent friend help me with some appraisals and selling a lot. Later I put up a 2 acre piece of property. He told me to double the amount on my tax appraisal.