How Accurate is the Assessor's Land Value?

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I was wondering how accurate the county assessors are on land value

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In my experience, the assessed value is usually based on transactions and values that reflect prices from a couple of years ago. In times of rapid change, when prices are going up or down fast, this is something to keep in mind.

Also, realize that the assessor is not an appraiser… and even appraisers aren’t perfect at valuing land.

ALSO also, understand what assessed values mean in your state. In my state, the assessed value = 50% of what the assessor thinks the property is worth (and the assessor is absolutely not pin-point accurate on their opinion).

So, the assessed value isn’t completely worthless, but I definitely would NOT take that number as the only gospel truth.

To get a better look at the value, you’d have to take a more holistic look at each property, as I explain in this blog post.

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Thanks a lot Seth for the information

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Use NetRonline.com to find property information. Then, call the county assessor’s office and ask what percentage of the assessed value corresponds to the market value. Each county has its own ratio, typically ranging between 85-95% of the assessed value.

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Additionally, assessed values tend to cover a wider blanket of land, regardless of individual characteristics. So a flatter, more buildable parcel might have the same assessed value as steep terrain, with much higher build costs or flat-out unbuildable.

Other than calculating potential tax hits for carrying costs, we rarely consider assessed values as part of our analysis, and we’ve reviewed thousands of deals over years, and invested in several million dollars worth successfully.

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It varies by county, and in the counties I work in, it’s significantly less than market value. Not even close usually.

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Thanks, a lot Ted for the feedback

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Thanks, Chris for the feedback

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Thanks, Iris for the feedback