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Answers (9)
- Linda Strasberg, "L Strasberg"
- Contributions:2314
In today's market it bears no relevance. Find yourself an experienced buyer's agent that specializes in "bank owned" properties and have them work up some stats of properties that have sold recently of like properties that you are considering purchasing. Your questions make me realize how much in danger of making a poor decision you will be without the help of a professional Buyer's Agent. There's really no way around it folks...you have to have one on your side to help you get these great deals.
- KathyNColo
- Contributions:1
No, I don't think you can go solely off the assessed value from the County.
In Colorado, state statute requires the Assessor to value property using past sales. This happens every two years, so if you are looking at a value now, it was based off 18 month worth of sales (probably, the assessor has the ability of going further back for sales if there were not many) ending on 6/30/2008. Just because the assessed value of the property from the assessor's office is low from the previous sales price doesn't mean that the property is worth that. The sales model they used to apply all the sales might have been off. Maybe the rest of the homes in the subdivion sold for less, bringing that assessed value down.
- FriendshipProperties
- Contributions:783
Assessments are not a good method for pricing. You need to use recent sales in the area and compare them to the subject property. If it sold for $295k in 2007, than they are over priced. It may actually be a short sale and the seller/agent is trying to avoid that by asking more than its worth (to pay off the loan and the agents commission).
- Mike Henderson, "mrgenius"
- Contributions:24
I'm not sure why you don't feel comfortable using the transaction broker model? Tax value to me has absolutely nothing to do with sales value. While there is some relationship .... In some parts of Colorado it's to high other times it's to low.
The best source is an agent who has access to the mls. This blows the data away from Zillow and County data. I'm an investor, but I got my Real Estate license simply to have access to the data. I also use the profits I make from the sales to invest in more Real Estate. It's a great time to buy.
The best source is an agent who has access to the mls. This blows the data away from Zillow and County data. I'm an investor, but I got my Real Estate license simply to have access to the data. I also use the profits I make from the sales to invest in more Real Estate. It's a great time to buy.
- Carrie Blair, "Carrie Blair"
- Contributions:155
I would definitely discourage you from gauging the market value of a home off of the Assessed Value. In some counties like Denver, it can be drastically low. In other counties like Adams County it is usually too high.
If you are trying to do "comparables" yourself you can look up a property you are interested in on Zillow and scroll through the "Comps" data on the right hand side. There may be bank-owned or short sale sold data that will skew the comps but at least it's a resource.
I would also suggest pulling up the range of houses on the block that you are interested in from the Assessor's web site. You can then click through on every single one and see if any recently sold. You will have a better idea of $/sq ft which is what it mainly comes down to for comparables.
On your closing cost issue, it is very normal to ask for up to 3% in closing costs to be paid by the seller. Most sellers understand that in this economy, they are going to have to pay closing costs for buyers and even down payment assistance of 3% if the buyer is going FHA. The only reason I could see why you are not having any luck is maybe b/c you are offering a lower price plus asking for closing costs.
In the end for the seller it comes down to net...what will the seller be receiving at closing. How you want to structure your offer (higher purchase price but seller concessions or lower purchase price with no concessions) shouldn't matter to the seller as long as he/she is receiving a fair net price in the end.
Good luck!
- sunnyview
- Contributions:25115
All I can say without know the area is that you have to trust your gut. Tax values are problematic. If you really love the house, spring for a really tight appraisal. Make sure and also look at the historical charts available here on zillow for the last 1, 5 and 10 years to see how much your area has been affected by the rising market. Again, trust your gut. It doesn't get paid a commission, but it always does a really good job for me :) Stay suspicious and be as well informed as you can be while you decide what will be best for you to do on the offer.
- Violales
- Contributions:5
I'm in Georgetown...there have been no sales recently and I don't feel like I'm getting honest advice. I've looked at comps, and they are all over the board. Aside from one home, all the homes sold in the past year have been under 250K. It's a small town, so fair market value is tough to determine. I don't mind getting my own appraisal- in 2007 it appraised for 303K. Since then, I know the value has gone down, but no agent will admit this. I'm just frustrated- not sure how to make another offer or if it is even worth another attempt.
- Bill McInerney, "Bill McInerney"
- Contributions:17
The other option is for you to retain and pay a professional real estate licensed and experienced appraiser. Don't guess and tax assessor's don't set the standards
I would recommend that you determine the estimated "closing cost" in your offer.
I would recommend that you determine the estimated "closing cost" in your offer.
- wetdawgs
- Contributions:26722
Tax assessor values in Colorado are not reflective of fair market value, so making offers on tax assessor values is likely to get you laughed out of a number of possibilities.
The best way to come up with a fair market value is to consider what has been sold in the neighborhood in the last few months.
My humble opinion is that I prefer to separate closing costs from the negotiation, i.e. pay them myself and make my offer accordingly. Why is that? If you have "sellers pay closing costs", essentially you've rolled them into your mortgage and are paying them for the next 15 to 30 years (plus interest).
The best way to come up with a fair market value is to consider what has been sold in the neighborhood in the last few months.
My humble opinion is that I prefer to separate closing costs from the negotiation, i.e. pay them myself and make my offer accordingly. Why is that? If you have "sellers pay closing costs", essentially you've rolled them into your mortgage and are paying them for the next 15 to 30 years (plus interest).
Tax assessor value
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