I’m looking for properties with equity in them. I see stuff all the time, just never do anything about it.
Went to a local Town Hall today and looked up a couple of properties.
What relationship does the assesed (edit) value have with what the property is actually worth?
One particular property has been abandoned for many years. Looking at the records, it appears as though Mr. died, left it to his wife then she went and her son in Ca. own it now.
Perfect set up from all I’ve read, especially the absentee owner.
Assesment seems high. Would the owner be looking to get that much seeing as that’s what he is paying taxes on??
Give me a couple of good hints as to how to approach the owner.
RE has been red hot in this area, but I think most of the big guys are stepping over the small stuff.
Thanks,
Eric
Edited 4/27/2005 6:20 pm ET by Eric Paulson
Replies
Assestments vary a lot from area to area based both on state laws and practices as how, when and where they are assests.
It would not be unusal for a property to get a basic value and than that be bumped up over the years based on average area sales while that one property is setting there with broken windows and rotten roof and get sell for only a fraction of that value.
Likewise it is not unual for an area be "found" and prices go way up, but the assestments don't follow. But for some "strange" reasons the tax offices work a lot harder to find the later than the former.
I'm thinking along those lines as well.
Taxes in the area have gone up, up, up over the past 10 years or so.
The owner being in CA is probably not in a good position to protest.
EricI Love A Hand That Meets My Own,
With A Hold That Causes Some Sensation.
[email protected]
Appraisel and assesment are two different animals. Assesments are done en-mass on a drive by basis using the latest questionaires to set tax rates. Appraisels are done on a detailed comparative basis and are supposed to be (not always) based on pure fact and they determine market value.
Assesments almost never go down unless someone files for a re-assesment. So it is hard to base market value of a property on assesment value on a property that is abandone or in serious disrepair.
How to approach the owner? I have bought 2 by sending a letter saying you noticed the property and it looked abandoned. You got there name from the tax records and wondered if they would consider selling it. And hope for a response. If you don't get one write again in 30 days or so. Try it 3 times. After that I figure they aren't ready enough yet.
Never make an offer or mention money in the first pass. Wait till they express an interest. Then send some pictures of the property with a time and date stamp on them with a nice insultingly low offer. They may or may not take it but give it a shot. My last one took the first offer. The other one was p*ssed. But I bought both at a good price so I am happy. DanT
Assesed value....doh!
I screwed that up.
Thanks,
Eric I Love A Hand That Meets My Own,
With A Hold That Causes Some Sensation.
[email protected]
eric... even when assessment is supposed to ber 100% of fair market value.. tehy get out of alignment with reality very fast..
we own property in NH... the assessed value is 40% of market value
here in our home town the assessed value is about 50% of market value
i don't think either one is unusual in this hot real estate marketMike Smith Rhode Island : Design / Build / Repair / Restore
What relationship does the appraised value have with what the property is actually worth?
Assesment seems high.
Are you talking about the same thing here? Because appraised value and assesed value would be different. Appraised value is what it is worth compared to other comparable properties that have recently sold. Assesed value is the value the property tax people put on it in relation to other properties, for asigning the proper amount of the tax burden. Real estate people could probably explain this better.
Assuming you are talking assesment only, no it does not neccessarily reflect the market value. On our tax bill it gives the assesed value, and estimated "fair market value" both of which are well under what the appraisal came out at when we re-financed.
Bowz
Yes, assesment, what I was reading off of the records.
EricI Love A Hand That Meets My Own,
With A Hold That Causes Some Sensation.
[email protected]
There is no direct link between assessed value and market value. In order to determine market value spend a couple of bills and get an appraisal done.
In many areas of the country they intentionally assess low in order to avoid too many folks challenging their assessments.
Mike K
Amateur Home Remodeler in Aurora, Illinois
Let me add a little more information to the mix, just the beginning of what could be a lenghty educational experience. You asked about to values, assesed and appraised. There are several others, the most important of which are the owners perceived value and the price you are willing to pay. ALWAYS leave yourself an extra cushion for the expenses that you overlooked. The price you pay has to purchase the project with enough leftover to fix and market and close while still paying you a profit. In answere to the beginning, the two values rarely have anything more than the address in common. I have lived in areas where you could not hope to buy a home for any less than two or three times the assessed value, and in others where I would be happy if it was worth what the taxed evaluation claimed. Just remember the important part is sell high, buy low.
Dan