Typically, Tax assessment value, does not necessarily equate to Market Value. Best thing to do is check to see what properties similar to the one you are interested in, has sold for in the last 3 to 6 months. Best strategy is use a Realtor's help if you don't have the time to do the research.
The assessor's valuation is to determine the taxable value and is not a good determiner of current market value because it is generally older information from a much broader period of time.
The best determiner of current market value is going to be what a willing seller will sell for and a willing buyer will pay. The best ways to discover that approximate value is to have either an appraisal done by an licensed professional appraiser or a Comparitive Market Analysis (CMA) from a Realtor professional.
While I am a Realtor and not an appraiser, I am known for my fairly accurate CMA's and the farthest I have been off from an appraisal on properties I have worked on, even in the recent market, is only a few thousand dollars. While appraisals and CMA's are in reality educated guesses supported by evidence, they are going to be your best tools to help you determine approximate current market values. Of course appraisals are more in depth and cost money, CMA's are a usually a market snapshot, usually free and can sometimes vary widely depending on the expertiese of the Realtor you are using.
If you are not already working with an agent, because it would be unethical otherwise, I would be happy to assist and advise you in your home purchase. You may feel free to contact me.
Brian L. A. Wess
CRS, GRI, ABR, ASR, CSR, e-PRO
RealtorÂ®, Broker Associate
Residential & Investment Specialist
Pat Newell & Associates, Inc - Metro Brokers
Colorado Springs, CO
COLORADO REAL ESTATE...DONE RIGHT!â„¢
Voted "Best Realtor in Colorado Springs 2006 & 2008"
The Independent News Readers Poll: Gold 2006, Silver 2008
Right now in El Paso county, the tax value to actual value is all over the board. When the market was booming, most homes had a tax value 10-20% below actual value. Now it can be high or low. An appraiser will take the past 6 months of sales of similar homes, in the same neighborhood to establish a value. If you want to provide me with the property address, I would be happy to run a CMA and email it to you.
I agree with Bill on this. The $200k assessed valuation is not necessarily market value. Where this really may come into being a factor soon though is with an appraisal if you were to try to purchase the property.
Also, as of May 1, 2009, there has been a change in the way FHA appraisers are selected. The mortgage broker no longer is calling in their own appraisals.
Brian is absolutely correct, most of the time it is older information.
A CMA is a very good tool that we Realtors use to determine the best value of the property.
We are not appraisers, but my CMA's are always only a couple thousand dollars off of the appraisal value.
You can save a lot of money on an appraisal when you find a great Realtor that really knows how to do a good CMA.
I know you are trying to find the best deal for you.
Let me know if you need anything