Is it possible .....

[Gary Leduc]

Is it possible that a SFR tax assessors appraised value be higher than what the market value of that SFR really be?

 

[Pamela Crowley (Florida)]

Yes.

I'll let others write more because I have to head out the door.

 

[Terry Russell]

Gary,

In Montana, the tax laws state all taxable property must be assessed at 100% market value. Plus for the purpose of tsxstion the assessed value is the same as appraised value.
I would think your major concern would be to look into when the valuations took place and the time that has passed.
I would agree with Pam
Hey glad you are doing what you want to do. I don't know where Pine Mountain is but my wife is from Dalton, Ga.
Terry

 

[Willie]

Happens every day here in TN

 

[larryhaskell]

Not in NV. State law requires that appraised value be less than market value. Without this state law it would be possible.

 

[Tim Hicks (Texas)]

Quite often in some counties in TX.

 

[Austin]

It must be a full moon. If you didn’t have an accurate appraisal then how would you know the relationship between MV and assessed value? If MV is defined as value as of a certain date, then in order for assessed value to = MV would require reassessment every day. If you say they are close in your market, then what does that say about people that make time adjustments? If assessed value was = to MV value then what idiot would waste money on an appraiser? Has anybody ever asked the tax assessor what their definition of MV is? Where I live it is the depreciated cost as of date of reassessment less an average market rate of accrued deprecation form all cause. Is that USPAP compliant? Does it conform to FNMA-HUD-FHA guidelines? Is the assessed value certified? If assessors are not required to be certified and licensed and can come up with correct estimates using methods that are not USPAP compliant, then why the hell do we have state appraisal boards, license and appraisala certification requirements, ASC, AQB, Foundation, etc.?

 

[john mello]

Yes.

A value that is assessed for ad valorum tax purposes is a statistical, rather than a discrete, product such as an appraised value. In Massachusetts, the standard for the margin of error for assessed values of improved residential properties is +/- 10% relative to market value.

There also is consideration vis. the valuation date, e.g. the values assessed for FY2003 (ends 06/30/03) in this state are based on the valation date of 01/01/02 and the data used to arrive at assessed values include property sales/rents, etc. that occurred between 01/01/01-to-12/31/01. Other states, counties or cities/town may have different regulations or guidelines, but the systematic lag permits time for data collecton, verification, property inspections, multiple analyses, model adjustments, final value reconciliations and then audit by whatever oversight procedures are legally called for by a jurisdiction. Systematically, assessed values may be generally higher during periods of rapid market price depreciation (and vice-versa) and lag behind market values (or prices paid) since it takes time to reflect the market changes in assessed values. Different jurisdictions have different requirements for the frequency with which their assessed values must be adjusted to market values. In Massachusetts, the minimum requirement is for revaluation every three years with the possibility of adjustment during the interim years.

In the case of an individual property, it also may be possible that the property's description that exists in the assessors' system may not be accurate or, because of the valuation date criterion discused above, may not reflect physical (structural) or market changes that took place between its most recent inventory inspection (or assessment certification) for assessment purposes and the time that the appraiser inspects the property. Therefore the parameters utilized by whatever costing/ depreciation/market adjustment procedures that are statistically applied might not reflect the property's condition/description as of the effective date of an appraisal that is completed subseqently.

Hope this explanation is helpful.

John Mello, MBA, SRA, MAA
MA Cert. General Appraiser and Assessor

 

[Ross (CO)]

Yes, ......and such examples of imbalance, and being tipped the other way, are found all over our metro area. Can be very common to research data for some neighborhoods and note selling prices much, much higher than the total assessed value on record. No wonder there is an appeals process for taxpayers. Some can show how they may be paying too much.....(while many others say "phew !", as they pay respectively less tax than the assessment formula would dictate). Every two years they have a re-assessment cycle and play catch-up to the best of their abilities. The system is not perfect. We have seen such continued growth here over the last Census interval that our assessor dept. is out-straight, as they say, yet still does a remarkable job at attaining new data, amending existing data flaws and making it all available on-line.

 

[Mike Simpson]

I've been noticing the same trend in WA

-Mike