19 Jun Establishing the Value of A Property
Establishing the value of a property is an integral part of Tax Delinquent Property Investment. Oftentimes this action can be made easy because some counties in the United States have some kind of a ratio they apply to their assessment.
For instance, in Arizona, they have two-thirds ratio of the selling price of a property. If you have a house in this area and the county’s assessed value is $150,000 that is probably worth about $215,000. That is the thumb rule there. In Arkansas, the assessed value is approximately 10 percent of the true market value. If something is assessed at $10,000 at ten percent; it is really worth in the $100,000 ballpark, more or less.
This is very easily found by browsing or surfing around in the county webpage. There you will be able to see if the sale prices are published there. Often, in the assessor’s page you can see not only what the properties are assessed at, but also what it sold for last time it was in the market. Their records are usually updated for the activity of the properties for the last 20 years or so. If the records are older than 20 years then they probably won’t have it on there. But, if it sold in the last 10 years with the price of $20,000 then it is assessed at $13,000. Calculating it will let you know that it is two-thirds of the last price of the property.
The simplest way to know the value of a property is by calling the county. You may ask the assessor if they have such a ratio which they apply based on the market value to come to the assessor’s value. They will tell you. So, ask them for the rule of thumb or the thumb rule. In Tax Delinquent Investment, knowing the value of the properly will give you a general idea of how much you can offer a tax delinquent property owner for their property. The better your understanding of the property value, the better your chances of maximizing your profit potential in your investment.
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