Can anyone tell me the difference between the list price and assessment value of foreclosure properties? Is it better to have a house list below assessment value or vice versa? We’re looking to do some rehab projects and need some clarification on these topics. Thanks in advance. ???
Howdy Show-me-the-money:
I am not too sure you need to be looking for property to buy until you get the basics down. The tax value or assessed value is what the county carries the property at on the tax rolls. This may be higher or lower than the actual value of the property depending on several factors such as condition and the overall market. In rapidly appreciating or declining markets the value could be off by 10’s of thousands.
The list price is what the seller is asking for the property. Why would you pay the seller more than the value especially if you are looking for a bargain. This is just plain old common sense. Sorry to be so harsh but better to learn it here and now instead of after writing a check and paying too much. Sure some asking prices may be higher than the tax value if they are in great shape and in an excellent location and these may even be bargains compared too the comps in the area and what you can get for the property after fix up.
Maybe your question was worded wrong but to me its is the same as asking if I go to the gas station do I pay the $2.99 per gallon or would it be better to pay more.
Thanks for the reply Teddy,
This is the reason I joined this forum is to learn some of the basics. Especially from seasoned pros like yourself. Maybe I should have started the post off with something like, “This may sound like a stupid question from some idiot newbie - but…” 