Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Bad management continues to plague banks. With all the REO property, much of it is being assessed at values much higher than market. The ones that are in the worst shape are worth even less.
But banks don't seem interested in contesting the assessment of these REOs. I was looking at one commercial office in Gentry that was assessed at $200,000 (like there was ever a downtown property in Gentry worth that much.) and they could reduce the tax bill by 50% or more. Probably 50% of the REOs I have looked at are worth LESS than 50% of the assessed values. Particularly, the poultry barns where they have lost contracts. Some appraised for $500,000 are selling $240k or even less. One farm sold $40,000 or so was assessed at $160,000. The barns were worth nothing in retrospect.
But banks don't seem interested in contesting the assessment of these REOs. I was looking at one commercial office in Gentry that was assessed at $200,000 (like there was ever a downtown property in Gentry worth that much.) and they could reduce the tax bill by 50% or more. Probably 50% of the REOs I have looked at are worth LESS than 50% of the assessed values. Particularly, the poultry barns where they have lost contracts. Some appraised for $500,000 are selling $240k or even less. One farm sold $40,000 or so was assessed at $160,000. The barns were worth nothing in retrospect.