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I am considering buying a property and accessed taxable value in this state and county (Nevada/Washoe) can't be higher than cash value (cash value is essentially is a market value by their definition), by law.
The home is for sale for price much higher than accessed taxable value for 2012. The taxable land value had dropped TWICE since 2011 accessment.
What does it mean?
And does it mean they're trying to sell for higher than actual market value?
I mean, when accessing for taxes, the county dropped taxable value twice... why would they do it unless real market value dropped twice, it's in their interest to collect as much tax as possible...
How does it look to you?
(sorry, I'm a total newbie to these things)
Tax assessments of value are often wrong. I have found them to often be too high. The higher the assessed value the higher the taxes the homeowner pays, so the assessors office may have an incentive to evaluate high. I don't think they are a credible source. The best thing to do is get a comparative analysis from a real estate agent, one showing what similar homes have sold for in the past 6 months or so.
Tax assessments of value are often wrong. I have found them to often be too high. The higher the assessed value the higher the taxes the homeowner pays, so the assessors office may have an incentive to evaluate high. I don't think they are a credible source. The best thing to do is get a comparative analysis from a real estate agent, one showing what similar homes have sold for in the past 6 months or so.
You see, my whole point here is that the accessed taxable value here is much LOWER than asking price (lower taxes). And by Nevada law, this value can not exceed cash market value. Does it seem fishy?
This taxable value dropped twice from 2011 to 2012--does it mean market value collapsed?
You see, my whole point here is that the accessed taxable value here is much LOWER than asking price (lower taxes). And by Nevada law, this value can not exceed cash market value. Does it seem fishy?
This taxable value dropped twice from 2011 to 2012--does it mean market value collapsed?
If it has been assessed lower than market value that is a good thing because your taxes should be lower. Not fishy. You probably have a tax assessor that doesn't know what they are doing, but it is not anything to worry about. If you want to know the value ask a realtor to help you. Could it be that the seller is just over pricing their house? That is what you really need to find out.
...requires the Assessor to establish the "taxable value" by determining the "full cash value" of the land and adding to that the estimated replacement cost of improvements (buildings, etc.) less appropriate depreciation.
They also only do this tax valuation once per year. Prices can change considerably over the course of a year.
This has nothing to do with "market value" for pricing a home for sale. The price drops may have been due to a drop in the cost of building materials. You need to look at what recent comparable homes have sold for in the area. That will give you a good indication of market value and if the asking price is fair.
The drop came mostly from the value of the land, and this happened accross entire area, not just with this house. This is a mobile home and most value comes from the land itself. That's why I'm wondering.
They land value in taxable accessment value is small compared to total money asked (bank owned), and it's an old mobile home, though in good condition. It seem like the bank asks for the same money as taxable assessement value for 2011--but land value dropped twice for 2012 accessment, so I wonder if they're asking way too much.
My view is:
--the county wants its money so it'll try to access at highest value
--the taxable value is capped, by law, by cash value that can be received at fair sale--which is market value
--the county had dropped taxable value twice in one year--there' must be a good reason for it
--so, I assume that taxable value accessed will be close to market value
--if the bank asks for much more... something isn't right... is it correct?
The bank can set whatever price they want. Usually they will have the value checked by a real estate agent or an appraiser and base their price on that. No one should use tax values to set a sale price.
It's up to you to determine a reasonable asking price. If you want to use possibly outdated and inaccurate tax values, then good luck.
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With a mobile home, the assessed value drops very fast at a certain age, about 30 years in most areas, and in fact I have seen them where the land value is significant but the mobile home value is 0. That doesn't mean someone won't try to sell it for a price appropriate for a regular house.
If the land and the area are desirable enough, or they manage to find naive
buyer, they may get it, but there will be a problem getting financing. Banks never did like to give loans on older mobiles and may only lend 80% of the land value.
The bank can set whatever price they want. Usually they will have the value checked by a real estate agent or an appraiser and base their price on that. No one should use tax values to set a sale price.
It's up to you to determine a reasonable asking price. If you want to use possibly outdated and inaccurate tax values, then good luck.
Certainly not outdate--just issued I mean... most recent. As to inaccurate, yes could be--but the land value dropped twice in all assessement records, in entire area, there must be a good reason for this.
With a mobile home, the assessed value drops very fast at a certain age, about 30 years in most areas, and in fact I have seen them where the land value is significant but the mobile home value is 0. That doesn't mean someone won't try to sell it for a price appropriate for a regular house.
If the land and the area are desirable enough, or they manage to find naive
buyer, they may get it, but there will be a problem getting financing. Banks never did like to give loans on older mobiles and may only lend 80% of the land value.
What's important: I looked at sales record and tax records for this and other local properties--in this area, accessed tax values always were around the sale prices, for each year.
To me this is a sign to assume that taxable value will follow market price closely in that county--now with this one, the improvements value didn't drop that much compared to land--but land value dropped extremely (twice) in just one year. This can only mean land prices are drastically dropping there... and the bank is asking old market price.
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