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the issue with LVT is in a market where there aren't enough sales to properly value the price of land itself. It does seem to be a pretty good solution if you d
by Xelbair 3y ago
the issue with LVT is in a market where there aren't enough sales to properly value the price of land itself. It does seem to be a pretty good solution if you don't have stagnant market.
- sokoloff 3y agoWhere do you ever have an active market of raw land?
- ethanbond 3y agoYou don’t need raw land transactions. When you buy a house today it is already assessed separately from the land on which it sits.
- sokoloff 3y agoAnd that assessment is based on an opinion (in other words, on air) rather than a market signal.
- dionidium 3y agoNot only that, it's not even an attempt to reflect the market value in most jurisdictions.
- ethanbond 3y agoI've not heard of this: why is that? What else is it an attempt to reflect?
- sokoloff 3y agoHere's a pretty randomly chosen one from a state that I know does the practice GP describes: https://www.zillow.com/homedetails/3304-Gillenwater-Dr-Knoxville-TN-37917/41624321_zpid/ https://www.zillow.com/homedetails/3304-Gillenwater-Dr-Knoxv... Sold in 2021 for $190K. Tax assessment in 2020 was $111K; in 2021 was $28K; in 2022 was $50K. The assessed value has no obvious tight relationship to the market value.
- ethanbond 3y agoEh, not quite. There are lots of market forces on that number, mainly not wanting to pay higher taxes and higher insurance and having the ability to appeal/contest it and get different appraisers.
- sokoloff 3y agoI am not taxed differently on the land vs the buildings. There is no market force on the land portion specifically from the city. Any appeal I would make would be based on comps, which are invariably land and improvements together. My insurance limits are distinct and negotiated between me and the insurance company, based on the cost to rebuild, which is at best loosely correlated to the current value of the improvements.