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Just curious as to who pays attention to

Discussion in 'General Appraisal Discussion' started by 65076507, Jul 10, 2011.

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  1. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Just curious who pays attention to the assessed tax value on the tax record. I ignore the tax record since it is not market value but I do check for consistent tax records amongst my comps. For example, if I have 5 comps and 4 of them have an assessed value of $100,000 and 1 has $250,000, then I may need to research that $250,000 comp more thoroughly. I am just curious on how and when you guys look at assessed value.....Thanks!
     
  2. Mike Kennedy

    Mike Kennedy Elite Member

    93
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Little or none depending on who the Assessor is....and the local Residential Assessment Ratio factor. The assessed value (either at 100% of MV or a Percentage of) is simply that person's professional opinion; I develop and report mine regardless of what the AV opinion is. First bit of info I look for on Assessment property records is the Date of their last Site inspection and any updates reported on the Sketch Rendering. I also inquire as to whether that last inspection was Interior or solely Exterior. In my markets when owners decline to admit Assessment personnel INSIDE (which is their right), Assessors typically cite refusal in writing and retain results of that contact in property files / public records. I've learned never to rely solely on Assessment Records and always visit B&Z Departments while I'm in the building (County, City, Town, or Village). WELL worth the few extra minutes.
     
  3. Noreen

    Noreen Senior Member

    14
    Feb 5, 2011
    Professional Status:
    Certified Residential Appraiser
    State:
    New Hampshire
    That's the way I approach it as well. HOWEVER, I will look at it more closely when I am extracting my adjustments doing ocean front properties because the type & utility of ocean front can vary within a very short stretch of area, i.e. beach front vs rocky frontage vs cliff frontage vs shared frontage. I have extracted say an adjustment based on location/type and used the assessor's valuation as a double check that I am on the right tract. This has saved me more than once.
     
  4. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Mike,

    Would you expect all you comps and the subject to have similar AV's. Just curious if your subject had AV of $100,000 and 4 comps had AV of $200,000 and last comp had AV of $65,000, just wondering how much research you do to figure out why such differences amongst your subject and comps. I had this situation today. I typically do not pay attention to AV's but today I was wondering if we appraisers have an obligation to research more of this when the houses are all very similar within 0.25 mile and all recent tax assessment within the last month.
     
  5. 65076507

    65076507 Junior Member

    0
    Jan 1, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Noreen,

    WHen doing the cost approach how do you estimate land value of the subject?
     
  6. Mike Kennedy

    Mike Kennedy Elite Member

    93
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I have seen such disparities many times and certainly do run it by the Assessors - for INFO purposes only..... often there may be negative or positive site elements not fully noted on property records; there may also be addenda comments on PC and not attached to physical property cards with detailed explanations re characteristics of specific props which may or may not be used after ascertaining the Assessor's reasoning and additional information. I am very lucky in that regard as all the Assessors in my 2 county market (formerly 7 reduced by my choice for profitability and local "expert" purposes) have known me for years and many refer potential clients my way for legal appraisals.
     
    Last edited: Jul 11, 2011
  7. Noreen

    Noreen Senior Member

    14
    Feb 5, 2011
    Professional Status:
    Certified Residential Appraiser
    State:
    New Hampshire
    That's a good question, in some towns we still have lots selling for custom construction but in some of the more urban areas, you will drive the comps and (this happened to me today) it seems the low end sales become the "knock down, new construction sites", so, in essence, these will become your land sales less demolition costs. I'm 45 minutes north of Boston to we still have the towns and we have "urban" areas.
     
  8. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    315
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Our assessors are generally fairly close
    On rural land with ag exemption, the land values are "off"...the tendency of the assessor is to "push" values in rural areas to compensate what many assessor appraiser think is unfair taxation...had them tell me that. If ag land was valued as developable land, the landowner could owe $10,000 - $40,000 annually on farms that don't even gross that. That's why ag land is valued cheap... bare land does not need police protection nor does it have plants needing an education.. Households do.
     
  9. Michigan CG

    Michigan CG Moderator Staff Member Moderator

    217
    Nov 1, 2006
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Hopefully not with the assessor's land value.
     
  10. PropertyEconomics

    PropertyEconomics Elite Member

    0
    Jun 19, 2007
    Professional Status:
    Certified General Appraiser
    State:
    New Mexico
    In commercial assignments I always provide the assessed value of the land, the improvements, and the tax amounts over the prior three years (or longer if there is a longer requirement of the client) as part of the property history.

    I do not do the same in residential assignments, but I do always obtain current assessments and taxes for the subject property.
     
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