Hi everyone. I’d like to start of by saying this is a very cool site. I was hoping someone could tell me if homes are always appraised for less than they can actually sell for. Almost everytime i look a home appraisal at the tax office, it is lower than the asking price. Also, can you look at the appraised value of a home and add a certain percentage to figure out what it would bring. Any help would be greatly appreciated.
No, tax value and fair market value have nothing to do with each other.
Tax value is how your county and city determine how much money to charge you for the privilege of owning property in their area.
Fair market value is how much you can reasonably expect to sell the property on the open market.
Every area is different. In some, tax value and FMV can be very close on most properties. In others, they are miles apart and either can be greater than the other.