This is a question that comes up frequently when home buyers view tax appraised values online. Thank you for asking it on Trulia!

The tax appraised value on a home, more often than not, is not a true reflection of its value on the market to sell. Tax appraisals are based on data collected by the tax appraisal district and not for the individual home. Some homeowners will protest their tax appraised values to keep their taxes low.

There are two ways you can determine value:
1) Hire an appraisal to conduct a full appraisal on the property. The cost usually runs a few hundred dollars.
2) Ask a local Real Estate Agent to run numbers for recent comparable sold properties and determine the fair market value for the house.

Yes, today's market is not the same market is was a year ago, but in Texas we have been very lucky not to experience the incredible downturns that some real estate markets have experienced (East and West coast in particular).

If you do want to find a property under tax appraised value, I suggest searching for foreclosures or HUD owned homes.

Because tax values are notoriously inaccurate. You could in fact be overpaying for a house if you pay tax value. Then again it might be a steal above tax value. In my mind tax values are an interesting idea to look at, but no way an indicator of what you should or should not pay for a home.

There's a million reasons or at least 1/2 million the tax value is often way off.

Paul,

Hello. It really depends on several things. 1. Where the property is located and when the last time it was assessed. 2. The seller could have requested a change of value to lower their assessment for tax reasons. 3. Most assessments are below market value and are not an accurate determinate of fair market value. 4. The appraisal is based on most recently solds, not on the tax assessment. If you would like to review some home values yourself, feel free, visit http// http://:www.TravisCountyHomeValues.info

Keep in mind that BuyersHouseRealty is not your traditional brick and mortar real estate company. We are the evolution of real estate and provide you a large financial incentive for using our services. Learn more by visiting our FAQ section of our site. http://www.Buy75.com

Happy House Hunting,

Gavin St.Louis
Realtor
BuyersHouseRealty
"The Real Estate Deal"

Paul, all great answers. In the end, the strength of the market for that particular house should drive the price a buyer is willing to pay. An extreme example might be a remodeled home. If a remodel has been done that drives up great demand for a home with an outdated tax record these two values would be way off. A house like that might attract multiple offers right away. Tax assessed values aside, you may want to pay more attention to the sold comparable values in the rest of the neighborhood. One side of the coin is to find a great buy in a neighborhood that has stable or appreciating values. The other side of the coin; to pay more than the neighborhood will support, is more unlikely since the bank appraisal will not allow that to happen. This year appraisals have come in even more conservative than ever, so over-paying is a more unlikely scenario. Best of luck with your house hunting.

Paul, in reality you should pay no attention to the tax value when trying to determine market value...there is often little relationship.

Your agent should help you determine what homes are selling for in the neighborhood you're looking in. You should review the sales of comparable homes in the last 90 days as this will help you determine the actual market value range of the home you're considering (once value adjustments have been made).

If your heart is not set on a specific home, you can make a low offer because you never know the seller's motivation. They may just accept your offer. If you have a specific property, you may need to make an offer closer to actual market value so you can get the house you really want.

Because 'in this market' the fair market value is typically quite a bit more than tax values.
Your realtor can help you with your offer.
Low ball offers will likely be ignored by most sellers. Get serious from the start and find a good home.

Paul, as in the previous answers, tax assessments can differ greatly. When I list a home I pull up comparables first and then pull up the tax assessment (mostly to check on square footage and lot size). I have two of my listings currently priced below the tax assessment. If they keep the homes instead of selling they will be able to protest the taxes, because these are too high. I wouldn't base anything off the tax assessment at all.
On another, but related note, please consider voting in the November elections for appraisal reform. Propositions 2, 3, 5, and 11 are extremely important to homeowners or future homeowners.

Good luck!

Hi Paul.
Since Texas is a non-disclosure state, the state uses a different way to evaluate a home.
This creates two different values. Tax appraised value and the True Value of your home.
Basically you want your tax appraisal to be very low and your home value to be high.
This works well, because if your tax appraisial is low then you, of course, pay less taxes.
When you buy a home the state asks you what you paid for the home. You are under no obligation to tell them.
Hope this helps.
If you need more info please call or email me.
Thank you,
Jeff

Hi Paul,

First, real estate is a very localized market. The market even varies from one part of Austin to another. So don't be convinced that home prices are in the toilet based on what you hear on the national news. Talk to your agent. Ask to see comparable homes in the same area. Look at the recently sold homes. After doing all that determine your offer price. It is ultimately your decision, but listen to and evaluate the information your agent provides. He/she should also be looking out for your best financial interest -- in Texas we are legally bound to do so!

Tax values are based on aggregage data not on an individual home. The appraiser does not come out to the individual house, evaluate it's condition and determine a tax value -- unless the homeowner has protested their taxes recently and even then it is rare. Most of us realize our tax appraise value is lower than the market value of our home and happily leave it there...

I'm hosting an open house today at Belterra -- 200 Granite. Please feel free to come by and chat if you would like to discuss this further. You can also call or email me. Just click on the box to the right.

Best of luck,
Carol