Quote:
Originally Posted by BroadHopper
The tax assessment also determine the market value of your property. Buyers will look at the tax evaluation as a criteria in determing the 'fair market value' of the investment.
Your taxes don't really go down. The tax rate goes up so it's a wash.
It's your return on investment that suffers.
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Buyers tend to look at other sales when making offers so basing assessments on recent sales makes sense to me. Unfortunately short sales, foreclosures, etc. drive down sales because many sellers have to lower their prices to compete.
I recently sold my house and had to price similar to short sales and foreclosures. The agent noted which comps were short sales and foreclosures, but that does not help much when it comes to attracting a buyer. If two very similar units are on the market and one costs $100,000 and one costs $150,000...which one would you buy? Similarly, if you are considering making an offer and see a nearby property sold for far less than the asking price you are considering, how much would you be willing to pay?
I was impressed that Laconia reassessed our unit to very close to what we bought it for. They came out and viewed the property and also asked several questions about the nature of the sale to confirm it was not a short sale, foreclosure, or friendly deal.