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Old 07-10-2011, 09:00 PM
65076507 65076507 is offline
 
Join Date: Jan 2008
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Default Just curious as to who pays attention to

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!
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Old 07-10-2011, 09:12 PM
Mike Kennedy's Avatar
Mike Kennedy Mike Kennedy is offline
 
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Location: Southern Hudson Valley
State: New York
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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.
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Old 07-10-2011, 09:15 PM
Noreen Noreen is offline
 
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Quote:
Originally Posted by 65076507 View Post
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!
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.
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Old 07-10-2011, 09:17 PM
65076507 65076507 is offline
 
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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.
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Old 07-10-2011, 09:19 PM
65076507 65076507 is offline
 
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Noreen,

WHen doing the cost approach how do you estimate land value of the subject?
  #6  
Old 07-10-2011, 09:23 PM
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Mike Kennedy Mike Kennedy is offline
 
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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.
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Last edited by Mike Kennedy : 07-11-2011 at 03:41 PM.
  #7  
Old 07-10-2011, 09:24 PM
Noreen Noreen is offline
 
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Originally Posted by 65076507 View Post
Noreen,

WHen doing the cost approach how do you estimate land value of the subject?
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  
Old 07-10-2011, 10:00 PM
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Terrel L. Shields Terrel L. Shields is offline
 
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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.
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  #9  
Old 07-10-2011, 10:14 PM
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Michigan CG Michigan CG is offline
 
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Quote:
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................WHen doing the cost approach how do you estimate land value of the subject?
Hopefully not with the assessor's land value.
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Old 07-10-2011, 10:18 PM
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PropertyEconomics PropertyEconomics is offline
 
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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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