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Cornerstone…, Both Buyer and Seller in Honolulu, HI

How accurate is the County Tax Assessment value of homes in Honolulu county? Investor friendly realtor wanted

Asked by Cornerstone Home Solutions, Honolulu, HI Thu Oct 18, 2012

I am looking around at homes in Honolulu county and am trying to figure out if the county tax assessment of homes is anywhere near accurate. It seems a bit high to me. I wanted to get some advice from local realtors.

What has your experience told you?

Also, if there are any investor friendly realtors out there on Oahu, I may need a good realtor to work with....

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Answers

2
While the tax assessor needs to establish an assessed value to collect property taxes, this assessed value is not an 'accurate' or reliable indicator of the true market value.
Property tax assessed values may differ from true market values for several reasons:
1.) Once every year the new tax assessed values for properties in Honolulu County are established based on ‘comparable sales’ (similar size & location) that recorded during the prior 12 months. That means tax assessed values lag behind the real market value by about a year.
2.) The tax assessor hardly ever inspects the inside / condition of the house. That means there are no adjustments for expensive upgrades versus original or even termite eaten tear down condition.
3.) The tax assessor does not adjust for views or property frontage. For example an oceanfront property with 100 feet of beach frontage might have the same tax assessed value as a similar property just two lots away located on the busy highway without ocean view or beach access. While both properties might have the same tax assessed value, the true market value for both properties could be different by Millions!
Hope that helps.
Aloha
0 votes Thank Flag Link Sun Nov 25, 2012
Actually, in comparison to the mainland property tax, clients from abroad have told me that Hawaii property tax is lower.
0 votes Thank Flag Link Fri Oct 19, 2012
so in general the tax assessed value in Hawaii is usually lower than it's real value?
Flag Fri Oct 19, 2012
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