Re: County appraisals reliable? - Posted by Ronald * Starr
Posted by Ronald * Starr on July 12, 2001 at 21:15:39:
Mel-------
You are in an interesting situation. Can you figure out what is happening there? You may have found a way to make some good investments, but you need to verify that.
If I were in your situation, I’d not pay much attention to the counties figures. I’d start by asking some agents about their perception of the market values in that area. Especially those with listings or recent sales in the area. I’d also check out the reputation of the area with ordinary folks in the town.
Often an area will get a bad reputations because of druggies, gang activity, high crime rate, etc. The area may get cleaned up, either by the police, the city government, or just be chance. It takes a while for people not in the immediate area to understant that there has been a turnaround in the neighborhood. This is an excellent time to get some bargain buys.
If you think this may be happening in the location, talk to police officers and local residences about the reputation of the area and the reality of the area. There is a good phrase: “the rep and the reality.”
If the place has recently turned around or is in the process of turning around, you may have a jackpot situation.
Even if the area is still not very good, you might make money if you buy cheap and can get in some good renters. I have heard that just one investor can sometimes turn around a little neighborhood by buying the bad properties and fix them up. Where did I hear that? Oh, I remember. On CREONLINE.COM.
If you buy in the area, ask for reassessments to lower values, to cut your taxes. I’ve done that three times and was successful every time. Maybe four times. If you’ve got a good argument, you can do it.
Good Investing*****Ron Starr*************