What is the best way to determine a beginning offer? How accurate to BPO/appraisal value are current year tax appraisal amounts?

Asked by Richard Mckinstry, Anchorage, AK Thu Mar 21, 2013

I am looking for homes in a smaller suburban community outside a larger city. The asking prices for the homes are $25-$40,000 over the 2013 tax assessments. I do not want to offer a "low-ball" but cannot account for the exaggerated prices. Just trying to determine fair offer prices before making any offers...

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4
Joseph Lownd…, Agent, Eagle River, AK
Wed May 22, 2013
Respectfully, you need to work with an experienced Realtor. Depending on the location and neighborhood of the home you are interested in, the Realtor will give you several similar comparables on what has sold in the last six months for the neighborhood. In most cases you will then be able to make a reasonable decision on the high and low value of the home to make an educated offer. More often then not, information and comparables used in tax records are outdated and therefore very unreliable.
1 vote
, ,
Sun Mar 24, 2013
Beth is right , you need CMA to determine if they are priced right, not tax assessed value. Traditionally market value is anywhere to 20% over tax value because of being a non disclosure state. Inventory is low and for the first time in a while I am seeing multiple offers and properties going in the first 15 days, so hopefully the properties you are viewing are priced right. Let me know if you need anything at all. I have access to everything and we own the FSBO company as well.

Good Luck!
1 vote
Beth Fread, Agent, Wasilla, AK
Thu Mar 21, 2013
Each taxing area has its own policies and assessors. Assessors are not appraisers. Also, Alaska is a non-disclosure state, so the Mat-Su Borough does not generally receive sale prices from the mortgage companies and solicits the new owners for their purchase price. It is my understanding that when people voluntarily reveal their purchase price to the Assessor's office, it is because they bought it for less than the existing Tax Assessment.

There have been times when assessments have been "blanket" adjusted in an area by a percentage. So, the large variance between market and tax value may be due to long-term ownership of the property, and/ or blanket adjustments, and/ or purchase through distressed circumstances like short sales and foreclosures.
0 votes
David Dorfman, Agent, Neptune, NJ
Thu Mar 21, 2013
1. ASK FOR CURRENT CMA/BPO

2. NeVER BE AFRAID TO LOW-BALL - You can always go up. Be a qualified buyer helps with a low offer as well.
0 votes
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