I know this is somewhat of an arbitrary question, however, when you
create your proforma financials how high do you typically raise your
assessed value? I know assessors are not supposed to sales chase, but
would you raise the assessed price to the sales price to determine worst
case scenario or is there some other rule of thumb you use? I am sure
this varies from location to location. Just wondering what some folks
have experienced.Thanks,Bill
I thought sales chasing is pretty much what assessors do (if by sales chasing you mean assessing the property by its resent fair market price as proven in a resent open market, arm’s length sale.) Here in California with our Prop. 13 (passed back in the far off days when there was a large number of sane adults living in this state), that is the only way assessors can reassess a property.
That’s what I figured. So you would just calculate the tax bill based on an assessed value of the sales price and if the deal makes sense you would move forward and if it doesn’t you would pass? I suppose that is worst case scenario., but possible.
There is no other safe method to use. You may luck out (and most of the time the assessor’s are still low on value) but what are you going to do if they raise it to full value?