diff between assessed value and market value? - Posted by smurf_god

import · May 13, 2003, 2:14am

Posted by JoeS on May 13, 2003 at 08:02:49:

Base your offer on market value using recently sold comps. An assessed value may be several years old.

import · May 13, 2003, 2:14am

Posted by smurf_god on May 13, 2003 at 02:14:20:

doing analysis on an apartment complex. the assessed value is $310K, while the asking price is $500K (9.2% cap rate).

why is this? which number should I base an offer on?

import · May 13, 2003, 9:54am

Re: diff between assessed value and market value? - Posted by Rob (IN)

Posted by Rob (IN) on May 13, 2003 at 09:54:36:

Here in Indiana assessed value is not related to value of a property. The governement uses some strange equation (It must be a differential equation or something no one normal can figure out) based on age of property and other values to assign taxes, and therefore the assessed value is worthless. If there are comps for apartments you can use those. If think comparing the gross rent multiplier for buildings in the area also works.