Im in the tarrant couty area (fort worth). Tarrant appraisal district TAD.com has a web sight that you can look up comps. The appraisal they gave my house was right on which is saying alot considering my house has many “additions”. I have been looking for propertys to rehab and ive been looking on aireo.com and at several forclosure properties list and other investor sights. I keep comming across sellers that have there properties seemably overpriced by the tad appraisal standard. For example on aireo there is a “deal” being avertised at 40,900 cheap he says. TAD appraises it for 36,000… I find deals like this all the time and worse then this scenario. Am I missing something? Or are there many people with high expectation for there properties? :hammer
Joe,
I’m not familiar with your market so take this lightly. Typically, using property tax assessments isn’t a good guage for market value. You may learn some particular areas and know how the assessment compares to actual value which could come in handy, but on an overall basis, not a good idea.
Until you either know a neighborhood very well and/or find a better way to get comps, it will be difficult to know if you have a deal or not. And yes, many sellers have high expectations for their properties. Unless there’s a true problem situation that only you can solve, there’s no reason for profit.
my view…
Right thats what I understood it to be also. Ya know the tax appraisals usually being less then the actual market value. But this appraisal sight is different. I checked my own street and it will pull up all the Tarrant Appraisals for my street and they all seem to be fairly close to the market values. I even checked on the guys house accross the street thats lived in his house for several years and its appraisal was right also. I figured that they might be accurate only if they were bought recently but that prooved not to be true… So I think it comes down to sellers either have added additions that was added after the appraisal or there jacking the price up for more dickering room…
Hi -
I have to agree with Tim here. TAD valuations may be “right on” for your neighborhood, but completely “off” for another.
There’s no doubt that the increasing use of technology has dramatically affected the way Counties (and other taxing agencies) conduct their business. And this is a trend that can only continue.
Even so, remember for the majority of properties, appraisal districts can (and most often do)lag the market considerably.
During major downturns, appraisal districts are loathe to lower valuations. It doesn’t exactly help the local coffers much nor does it do a whole lot for the image and publicity efforts that take place in most large metropolitan areas. I’ve seen instances where, in poor economic times, valuations that are thousands of dollars too high – sometimes tens of thousands, and occasionally the difference can even reach seven figures or more (on really troubled projects).
On the other hand, when times are good (or the area is booming – Frisco, anyone?), the “powers that be” spend a lot of time, effort and money to capture what they feel is a runaway market. And that’s good for some, but not for everyone I assure you.
In any case, the local AD is a good place to start. But don’t pin your hopes on them as a source of value.
Take care,
Eric C
great. that clears up alot.
You both do a great job.
So I guess the most accurate “free” way to get comps is still to go and see what propertys are selling for on the MLS in that area . Of course theres still the issue of what is considered that area and what is considered to be comparables such as a 1500sq.ft 4bed 2 bath with a 1500sq.ft 3 bed 2 bath house. They both have the same sq. footage but different room ratio. One has considerable smaller rooms then the other also.
thanks again,
Joe.