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Tax Assessment vs. Appraisal
- Thread starter marywag
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Greg Bell
Senior Member
- Joined
- Jul 7, 2006
- Professional Status
- Gvmt Agency, FNMA, HUD, VA etc.
- State
- Louisiana
Local tax authorities utilize a mass appraisal system that rarely reflects accurate values for single family homes.Depending on your area ,assessed taxes usually do not react to market conditions .Appraisers do not include tax assessment value within the appraisal...
Keeping in mind that a "current" assessment usually reflects value that is a couple of years old, in theory, the values should be close. In practice, some things can separate them or make them seem different. For example, in some jurisdictions, "assessed value" is reported something other than 100% of the assessor's estimate of market value. So even though the assessor and an individual appraiser both think something is worth $100, it might be reported as having an assessed value of $80. Another thing that can cause reported values to vary is that assessor's offices often have to appraise tens of thousands of properties every year, so the appraisal process produces results that are more skewed than the results generated by an individual appraiser taking his or her time with one property.
Restrain
Elite Member
- Joined
- Jan 22, 2002
- Professional Status
- Certified General Appraiser
- State
- Florida
Tax valuations are used to equalize taxes. Some states have requirements that state the values have to be within X of current market value as of the date of assessment. Your home should be assessed similar to other homes in the market, not exceeding market value for the home.
Roy Courtney
Senior Member
- Joined
- Dec 8, 2006
- Professional Status
- Certified General Appraiser
- State
- Texas
Just completed a commercial appraisal. The appraised value is $630,000. The appraisal district has it valued at $185,840. The appraisal district has no licensed or certified appraisers on staff. I suppose they are saving money!
- Joined
- Mar 30, 2005
- Professional Status
- Certified General Appraiser
- State
- New York
Dates of value for such assignments are often retrospective. Check with the assessor's office to see what the date of value is.
Some jurisdictions may have certain laws regarding the way properties are assessed. For example, I am told by people in the know (attorneys here in NY that fight assessments) that commercial properties are required to be appraised by the Income Approach only, which may be the wrong approach to use. That leads to some very interesting results, especially given that certain residential properties here in NY are classified with commercial codes (e.g., certain residential condos).
As a result, in my area, it is not uncommon for commercial properties to be underassessed, and often way underassessed.
Some jurisdictions may have certain laws regarding the way properties are assessed. For example, I am told by people in the know (attorneys here in NY that fight assessments) that commercial properties are required to be appraised by the Income Approach only, which may be the wrong approach to use. That leads to some very interesting results, especially given that certain residential properties here in NY are classified with commercial codes (e.g., certain residential condos).
As a result, in my area, it is not uncommon for commercial properties to be underassessed, and often way underassessed.
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