I’m assuming you’ve looked at the tax records for this home and are seeing a low assessed value in comparison to its current asking price.
In reality, these two numbers have nothing to do with each other. Assessed price was determined when the home was last sold. The assessed price remains the same until the property is sold again or significant improvements have been made.
In many cases, the current value and asking price is significantly different than when it was last sold.
I’ve had many buyers ask me, “What did the current owner pay for this house when they bought it?” My standard response is, “It doesn’t matter. All that truly matters is that the current price is in keeping with other area comps.”
In this case, the current taxes are low but will be readjusted to current values reflecting any new sales price.... more