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So two threads now about determining value.... what is your real question? Are you looking to buy, sell, do a term paper.... just curious? Perhaps we can help more if we know more about what you'd really like to know.
I understand the difference between appraised and assessed, don’t mistake me for an idiot.
My question is how do appraisers come up with the magic value to allow the bank to move forward with approving the loan???
They find recent nearby sales that are comparable to the subject property, and make value adjustments for differences to end up with a comparative appraised value.
I understand the difference between appraised and assessed, don’t mistake me for an idiot.
My question is how do appraisers come up with the magic value to allow the bank to move forward with approving the loan???
Well, except that WASN'T your question. In your first post in this thread, you wrote about APPRAISED VALUES as if you could know exactly what they were for any house you were interested in (and I was confused about this, as were other posters, because I don't see how you would know that). But in later posts, you amended that to ASSESSED VALUES. As many posters have already pointed out, those are not the same things.
The question you asked in the post I quoted above is quite different from what you asked in the OP, when your question implied that you knew what appraised values were. And post #3 in this thread also used ASSESSED values as if they had something to do with APPRAISED values, which they do not. So you can say now that you "understand the difference between appraised and assessed" -- but you clearly DID NOT understand the difference when you started this thread, at least from how you worded your question.
So: are you concerned that a property that you want to buy might not appraise for what you plan to offer? I am just guessing here, since you were simply not clear at all in the OP (sorry!).
Appraisers look at comparable properties that have sold recently, e.g. in the same neighborhood, number of bedrooms & bathrooms & garage spaces, square footage, etc. When they must compare, say, a 4-bedroom house with a 3-bedroom house, they adjust accordingly. Can you be more specific about what your concern is?
When comparables are being used to come up with an appraisal amount how old are the comparables usually, is there an amount of time they are not allowed to pass ? (Over 90 days etc.)
Since I’m unable to post photo documents of several examples I will write it out:
9023 Langdon Ln
Assessment year 2018
Assessed value Total $150,000
ASSESSED VALUE HAS NOTHING TO DO WITH MARKET VALUE. IT IS ONLY TO DETERMINE A FAIR PROPERTY TAX.
Market Value Total $150,000
WHAT DO YOU HAVE TO BE ABLE TO SAY, THIS IS THE MARKET VALUE. DO YOU HAVE A COMPARABLE MARKET ANALYSIS, COMPARED WITH ADJUSTMENTS FEATURE BY FEATURE WITH 3 OR MORE COMPARABLE PROPERTIES. IT TAKES A CMA OR APPRAISAL TO FIND THE MARKET VALUE.
List price $249,000 ————> $229,000 decreased.
THIS MAY OR NOT BE THE MARKET VALUE AND CANNOT BE KNOWN WITHOUT A CMA PREPARED BY AN EXPERIENCED PERSON OR AN APPRAISAL.
I wrote in caps, to shout out the truth of what it takes to determine market value.
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Perhaps we can help more if we know more about what you'd really like to know.
