Market Conditions in Houston>Question Details

Syed, Home Buyer in Houston, TX

why this housr is priced at $140,000/- where as the HCAD value of house is $80,000 and the does not even have sewerage lines?

Asked by Syed, Houston, TX Mon Aug 26, 2013

This question was asked from http://www.trulia.com/property/3123894965-11607-Adel-Rd-Hous…

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9
Syed ...

Please read my colleagues' replies ... they're packed with very useful information. All that aside, however, if your objective is to purchase the home for the assessed tax value, it's just not going to happen. Once you have the "comps" in your hand, you can pretty accurately determine its market value ... and if the price is totally out of the ballpark, it's best to move on.

Of course, this doesn't mean that a cash buyer won't pay whatever the seller is asking. Be it a house, car, or anything else, something is worth what someone is willing to pay.

You need a Realtor to provide the information, since home sale prices are not public record in Texas ... and given that there is no cost to you as a buyer, why wouldn't you work with one of us?

If I may be of further service, please feel free to contact me.

Regards ...

Al Geffon
Trend Setter Realty
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Mon Aug 26, 2013
Simply stated HCAD is rarely correct. They have to value all property in the entire county every year. They are not intended to be an accurate sales market value. They do it to generate a tax base. They also are based on the value in December of the previous year. According to HCAD this property has made zero value changes in five years. Not possible.
Web Reference: http://www.DaveRealty.com
0 votes Thank Flag Link Mon Aug 26, 2013
Assessed value is sometimes higher and sometimes lower than market value. Market value is determined by actual sales of comparable properties.
0 votes Thank Flag Link Mon Aug 26, 2013
Unless you look at the home and nearby sales you really cannot say for sure if the home is priced correctly or not. It may be or it may not be. Homeowners can tell their agents to price the home at whatever they wish. My job is to provide my clients the information they need so we can set the home at a price the market will support to allow a quick sale for the highest possible dollar amount.

Many homes in Texas use septic and this is common... even in high price homes. The farther you are the more likely this will be.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Mon Aug 26, 2013
Comparing assessed values and market values is like comparing apples to oranges. They are rarely meaningful.

You need a real estate professional to help you to make sense of the market if you are a serious buyer. Your Realtor will guide and help you from the information gathering phase of your search through close of escrow. Cost? The commission for you Realtor is almost always paid by the seller. What a deal ! Professional guidance at no cost to you.
0 votes Thank Flag Link Mon Aug 26, 2013
Please remember that sellers (and their agents) can LIST a property for whatever they'd like. That does not mean that it will sell at that price.
0 votes Thank Flag Link Mon Aug 26, 2013
Alan May, Real Estate Pro in 60201
MVP'08
Contact
Syed,

Some homes are on a septic system for their waste water. Would have to check.

Regarding the Harris County Appraisal District (HCAD.org), the values they show are what they access the home for taxes and it is typically NOT based on this one home, but a general view of the values in the area. Also, they are typically about 12 months behind what the market is doing.

Looking at HCAD to determine values is the wrong way to go! You need to speak to a local Realtor that can pull up recent (last 6 months) sale data and compare apples to apples in relation to age, size, etc of the home.

The Houston area really took off in the early part of 2013 and HCAD can only set their values once a year, every January. You bet the values will go up in early 2014 on their web site.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Mon Aug 26, 2013
One is the county appraisal, the other is the owner/listing agent.
0 votes Thank Flag Link Mon Aug 26, 2013
Great question! It will take a little work to give you a qualified answer on this one. If you are not currently working with a Realtor give me a call.
0 votes Thank Flag Link Mon Aug 26, 2013
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