Land assessment in cost approach

[V. Nightshade]

Does anyone use the land assessment in tax record of of a recently sold property as an indication of land value for the cost approach? Would there be anything wrong with this as providing "support" for site value? In California it would have to be very recent, because of Prop 13.

 

[Mztk1]

Don't know your state, or your market. Here, you'd be nuts.

A lot of appraisers by me used to, and some still do, apply a multiplier to the assessed value for the land. Could never figure out why since it is so flippin inaccurate.

 

[CANative]

I would never use the tax assessor's number. Especially in CA. Most of the time it's just "made up" so things coincide with the last sales price.

Do the work necessary or don't do the cost approach.

 

[Michigan CG]

Never would even think of it.

 

[V. Nightshade]

I was just wondering, and it seemed like a logical inquiry. And as Tim says, "you do not know what you do not know."

 

[Mike Boyd]

Never. You might as well guess as that is all they do and I think most market value appraisers' guess would be more accurate. Run comps, go as far back as necessary, go to different neighborhoods with similar amenities, use listings if necessary.

 

[Ray Miller]

I would not in the area I cover. Too many different asessments. My ranch has three different kinds of values per the assessor. Which one would you use on what parcel? None are even close to the market.

 

[Thomas Fiehler]

There are 6 methods to arive at the land value-3 for residential work and additional 3 for income purposes. Of these 6 methods, none are a regurgitation of the assessment value!

 

[moretti]

i sure dont

 

[Jim Mallon]

I work for the assessor and I would never use a comp's assessed value as a basis for a land value allocation, even if fairly recent. Remember, under Prop 13, the sale price is PRESUMED to be Fair Market Value, but it is not always so. You need to confirm sale prices as opposed to assessed values.