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Land assessment in cost approach

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V. Nightshade

Thread Starter
Junior Member
Joined
Nov 17, 2003
Professional Status
Certified Residential Appraiser
State
California
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

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
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

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
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

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Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Never would even think of it.
 

V. Nightshade

Thread Starter
Junior Member
Joined
Nov 17, 2003
Professional Status
Certified Residential Appraiser
State
California
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

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
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

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
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

Senior Member
Joined
Jun 2, 2003
Professional Status
Certified General Appraiser
State
Ohio
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

Junior Member
Joined
Dec 31, 2007
Professional Status
Certified Residential Appraiser
State
Oregon
i sure dont
 

Jim Mallon

Member
Joined
Dec 9, 2004
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
California
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.
 
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