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> This sounds terrible for owners and perfect for governments and rich investors. I live in a blue area where the tax appraisals deviate from the for-sale list
by OrvalWintermute 3y ago
> This sounds terrible for owners and perfect for governments and rich investors.
I live in a blue area where the tax appraisals deviate from the for-sale listings by hundreds of thousands to millions, 4 million is the highest deviation I've seen thus far.
Thought a fairer system would be for appraisals to raise to the highest listing price, or most recently sold price, automatically.
- freeone3000 3y agoThis sounds so obvious that I see no downside. The a very good estimate of the value of a property is the price it last sold for.
- thinkharderdev 3y agoUnless the last sale was 25 years ago
- freeone3000 3y agoEven so! This is usually closer than the assessor estimate! Assessor estimates are wildly off, mine by nearly $400k, or more than 60% of the total value.
- thinkharderdev 3y agoThat is nuts. I wish the assessors in my state were that incompetent :)
- toast0 3y agoI've looked at property taxes in different states and some states have a system where tax appraisals are roughly based on actual fair market value, possibly with adjustments which may be distorting (Prop 13, for instance), and those will usually take a completed sale price as evidence of fair market value. Other states have systems where tax appraisal is routinely 10% of fair market value, and there's some justification for that that never made sense to me. Typically the published tax rates are then much higher than in states with fair market value appraisals. Tax rates as a % of actual market value tend to be roughly similar across states though.