Just a question from a novice.
Should TAV (tax assessed value) be close to ARV or appraisal value or is it something totally different?
Maybe a stupid question, but i am not smart.
Thanks
Not a stupid question. Tax assessed value is just a number derived by the municipality for every property in their dominion so they can calculate and collect real estate taxes. It has only a small correlation to market value or after repairs value and should not be utilized as a substitute for either.
71tr is right on the money…more often than not, the tax value has no corrrelation to any sort of reality – so much so that it CANNOT be trusted for anything except figuring out what the taxes might be.
Keith
In our area, TAV is rarely updated unless the house has been sold. We’re looking at a house that has an ARV of $579K, and the TAV is $25K because the same owner has owned it since 1925, when it was built. It probably hasn’t been re-evaluated since the 70s or 80s.
Great example of what I’ve been saying all along Bobbi…here’s an example where the assessed value for taxes is off by almost 96%!!!
You cannot trust tax value to be accurate if you want to use it in lieu of a CMA or an appraisal.
Period.
Paragraph.
Keith
People like to use the TAV because is easily accessed and free. But there are only 2 ways you get in trouble in real estate. #1 being greedy and #2 is being lazy. Trying to use the TAV to determine what a house is worth is an example of being lazy. You need to go out and get the actual sold comps to determine what the value of the property is.
Yup…what he said!
Keith