One home I looked at today shows:
2002-2004...3years at the same value
2008-2010....3years at the same value (increased since 2004)
in 2007 to 2008 nearly $40,000 jump in value.
This just goes to show you how the tax values can't be trusted as market values....and should never be used as a basis for offers.
Do you really think the value of any house stayed exactly the same for 3 years 2002-2004 or 3 years from 2008-2010....was there some magically price hike in 2007 to increase the value by $40000? I don't think so.
They're interesting to look at...the only thing they are good for is estimating taxes.
If you have a bank appraisal for $215,000 that is an entirely different issue. Just let us know if that is the case as there will be a very different answer. Your realtor should be explaining this to you. If not let us know and we can assist you. Again tax value above or below the asking price is NO indicator of a good or bad deal.
It's possible the house is appraised well under market for its amenities and condition, but on the other hand the tax appraisal could be accurate or above market. Please remember that sellers don't offer properties at the lowest price they'll take - the list price is usually the highest they think they can get. Some will come down from that, others won't.
Ask your Realtor what comparable houses are selling for and from that decide a negotiating starting point.
Check out the area and prices at http://www.DallasHomeValueReport.info
Are you looking at the tax appraisal? If so, this is not related to a bank appraisal and is common mistake. The tax appraisal is a lagging indicator and is not typically an accurate reflection of market value.
Bank appraisers will compare the home you wish to buy against 4-6 months of recent sales in that neighborhood. This will determine how much the bank will lend you. Your Realtor should be able to provide recent comparables (the bank appraiser will look at the same information) and give you guidance on an appropriate offer. If you're not using a Realtor...get one! Our services don't cost the buyer anything and can save literally thousands of dollars and untold heartache. It probably sounds like a broken record at this point, but if you are willing to use this forum as a resource you are already relying on a Realtor's expertise and know-how! So take the next step and call one to help you navigate this process.
Best of luck,
Another option is to offer that seller his/her asking price provided s/he agrees to sell with owner financing.
That is an interesting question that you ask as value is always in the eye of the beholder.
There are some facts that should shed some light on what others feel that similar home is valued at. If you have been working with a realtor you should be armed with, not only what is for sale of similar size, construction and condition in the immediate area and neighborhood, but also with what has sold in the last several months.
This will give you some insight. Remember that your offer to the seller is an opportunity for them to sell you their home and most probably they will be happy to have the opportunity to either accept your offer or begin negotiations with you.
If I may help you in this process feel free to contact me.
Keller Williams Elite Park Cities
Where did the appraisal come from ? Appraisal is an paid for by you .
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
You do not mention if you are working with a Realtor. If you are they should be running comparables to help you make an informed decision. You also do not say when the $215,000 appraisal was done. Appraisers are only going back 3-4 months for sold data. Was the appraisal done for a refi or when this seller bought?
The only person who can really help you make some sound decisions needs to have been in the house and hopefully know the neighborhood.
If I can provide any assistance let me know.
Mary Beth Harrison
The Harrison Group
Keller Williams Realty
When you say it was appraised for $215,000 do you actually mean appraised or that is the tax assessed valuation on the property? They can be two entirely different values. As far as a starting bid, you need to speak with your Realtor regarding the amount. They should be able to show you comparable properties in the area so that you can see what they are selling for. That should give you a good idea of where to begin and where to end. Good luck!!
Tru Value Realty