Different appraisal numbers from the lender and tax assessor’s office

[immiq]

What is the name of your state?AL
I am trying to find out the true house value. I am told the property appraising ordered by the lender may be different from the value appraised by the county tax assessors. Do you know which value number is usually higher or lower, from the lender or from the tax assessor’s office and why? Thanks.

 

[seniorjudge]

The assessor makes an appraisal for tax purposes only.

The lender gets an appraisal for loan purposes only.

If you want to know what the market value of your land is, you have to pay an assessor for a market value appraisal.

 

[immiq]

The assessor makes an appraisal for tax purposes only.

The lender gets an appraisal for loan purposes only.

If you want to know what the market value of your land is, you have to pay an assessor for a market value appraisal.

Thank you for the answer. I understand the different appraisal for different purpose. Can we say the tax appraisal is usually lower than the market value appraisal or it should be reversed?

 

[seniorjudge]

Thank you for the answer. I understand the different appraisal for different purpose. Can we say the tax appraisal is usually lower than the market value appraisal or it should be reversed?

I do not know....

 

[LindaP777]

Can we say the tax appraisal is usually lower than the market value appraisal or it should be reversed?

In my county the tax appraisal is usually lower . . . but I have no idea about your county. In our county, the tax appraisal is often based on the sale price. But if a house hasn't sold for years, the appraisal can be quite a bit lower than the market value due to appreciation of the house.

To find the market value, ask a realtor for comps (comparables values in the area).
If the house has sold recently, what did it sell for?
If a house nearby that's similar sold recently, what did it sell for?

 

[HomeGuru]

What is the name of your state?AL
I am trying to find out the true house value. I am told the property appraising ordered by the lender may be different from the value appraised by the county tax assessors. Do you know which value number is usually higher or lower, from the lender or from the tax assessor’s office and why? Thanks.

**A: no one can predict the outcome.

 

[efflandt]

You have to find out from your tax department how they appraise property. In my IL county, it is assessed at 1/3rd of market value, less homestead exemption if owner occupied (or assessment freeze for seniors).

In WI, developed property is assessed at market value, undeveloped land is assessed 50%, and agriculteral land is assessed at its crop value.

I would suspect that anywhere, a recent lender's appraisal would be more accurate than any drive by tax assessment, since it is in their best interest to protect themselves from any default.

 

[immiq]

Thank you for your good answers. Let me share something. I visited my county tax assessor’s office. I was told the tax appraisal is based on a massive houses but the market appraisal (requested by the lender) is usually a couple of houses sold recently. Thus, the tax appraisal in my county is lower, usually 90% of the market appraisal. I was also told the change of the tax appraisal has nothing to do with the house purchase price but the budget for the school, police etc. It seems an offer from the tax appraisal may be good starting and safe.

 

[nextwife]

I'm in WI, and I'm way UNDER-assessed (which I am certain of because I see new sale price comparables daily). While in theory assessments are supposed to be current market value, the assessor only sees the home INSIDE maybe every decade and bumps the assessment based on presumed percentage increases. So called "cosmetic" changes , such as hardwood floors, new countertops, ceramic tile floors, etc, are not seen by the assessor. Also, assessments are more likely to be based on old information and not necessarilly up tp date. An independent appraisal is more likely to reflect current condition and value. But there will be variation between appraiasals, bepending upon what comparables are used and how well the appraiser knows certain unique aspects of a certain neighborhood. For example, being east or west of a given street may make a huge difference within a given area.

In my experience, assesssments are an unreliable determiner of home "value".

 

[HomeGuru]

I'm in WI, and I'm way UNDER-assessed (which I am certain of because I see new sale price comparables daily). While in theory assessments are supposed to be current market value, the assessor only sees the home INSIDE maybe every decade and bumps the assessment based on presumed percentage increases. So called "cosmetic" changes , such as hardwood floors, new countertops, ceramic tile floors, etc, are not seen by the assessor. Also, assessments are more likely to be based on old information and not necessarilly up tp date. An independent appraisal is more likely to reflect current condition and value. But there will be variation between appraiasals, bepending upon what comparables are used and how well the appraiser knows certain unique aspects of a certain neighborhood. For example, being east or west of a given street may make a huge difference within a given area.

In my experience, assesssments are an unreliable determiner of home "value".

**A: I agree, especially in a hot seller's market.