Home Forums Hunting & Shooting Hunter's Campfire Appraisal Question

Here in mn and wi for that matter, the tax bill is ALWAYS considerable less than the appraisal. With the his ass taxes here you don't want them to be close. The only time it was right on was when we built our house and the taxes were the property value bfore the house was built. The next year the house was finished and the assessment was the appraised value.



He did by getting the permits.

Yep, the income based valuation method... NOI/CapRate = value.

But, I thought Tarkio was the expert on purchasing RE without assistance. So, why is he here asking RE 101 questions?

Scott

In larger areas where there is a lot of commercially zoned land and buildings it would be difficult for the county to do full blown appraisals on every property. Commercial properties are not like residential properties where sales comps are more homogenous. Since appraisals are based on sales that occured in the past they may not reflect actual market value. Especially if prices are increasing or decreasing rapidly. So tax assessed value, appraised value and market value can often be different numbers.
During the crash I had to deal with high appraisals that banks where supplied with by local appraisers that were no where near what the commercial properties were going to sell for because they were based on sale comps in a declining market.

I'd suspect if values are changing quickly the real estate agent ain't gonna want to sell it for to little...

That depends on whether or not the values are changing up or down.

Tarkio,
Couple questions:
1. Why are you needing the appraisal? If it's for your own decision to buy or not buy, do your homework and look at NOI's/ROI's and what you think what monthly/yearly income this property can produce with proper management. FYI, there's no harm in asking to look at current owner's "appraisal". In our great state of FL, appraisals are kinda like a'holes.. Everybody's got one. Nuff said there. On to next.

2. If it's for insurance purposes, welcome to my nightmare. If the property is in FL, usually the county govt's appraisal will almost always favor you and be your friend. Theirs are based on taxable value. Additionally, many county sites have a "comps" page clickable with their assessments to support your value assertions to the insurance company of "last resort", (aka Citizens), who are always trying to phfuck you. They are state affiliated with our fair haired/no haired governor Rick/Dick Scott who claimed the 5th no less than 57 times under oath. Kinda' gives you a warm, fuzzy gooey kinda' phfukkin feelin' about our current state govt, doesn't it??
My current conflict is on a rental property I own that Citizen's feels is valued at $220K. The fallback presented to me by my "new" agent (won't go there for now), is $171K. Both estimates are ridiculous, in my opinion, so I presented multiple free internet appraisals last night to him ($149K). We'll see.

3. If it's to beat down the current owner's price, don't waste your money or his. just tell him how you can help him with HIS problem and what it's going to take for YOU to bring the property up to snuff and profitable. If they're motivated, then that'll be it. If not, go on to the next one.
I'm really not looking to buy any more property here in the south of south, so my advice/attitude may be skewed. I just know the ropes better than I'd like to at this point. When it comes to knowing how to deal with Citizens lately.. I know that real good.

HTH. School me back some time..

Best Wishes,
LD

Boy, the butt-hurt is large with you isn't it?

Dang son, you are showing you're lack of security with your chosen profession aren't you?


BTW this is part of a business I'm looking at buying so return on CAP rate isn't what I'm looking for.