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Old 12-21-2019, 06:50 AM   #1
Hogmauler
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Question Land appraisal question

Iíve seen several parcels of land that were priced st twice their appraisal value. These were undeveloped properties as well that your looking at dumping at least $50,000 in for a well, electric, and septic, possibly dirt work etc etc.
Does price vs demand come into play here or is it the possible lack of comps?Im sure countless numbers of folks have had this question cross their mind: Why would anyone pay twice the appraised value for not only land but anything? Hopefully weíll hear from the V A appraiser on this one.
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Old 12-21-2019, 07:23 AM   #2
tps7742
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Are you talking about the County tax appraisal or actual land appraisal per an agent etc?
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Old 12-21-2019, 07:27 AM   #3
Hogmauler
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I’m talking about the difference between the actual land value, taxable amount, and what the land is listed at. It seems like those numbers should be more in line in some cases.
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Old 12-21-2019, 08:02 AM   #4
jaspermac
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These are 2 different things. You can put whatever price you want on whatever you have. They maybe looking for an uniformed cash buyer. People are willing to spend a lot more for property they really want and don’t care about an appraisal.
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Old 12-21-2019, 08:04 AM   #5
JayB
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There are only 2 real values on real estate....the value the seller thinks he can get and the value the buyer is willing to give.

Sometimes, those are far apart. Keep looking until you can get that gap to a satisfactory level.

.....and God Bless America.
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Old 12-21-2019, 08:08 AM   #6
Hogmauler
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I think it’s crazy that some folks would pay twice what a piece of property was appraised at. Example. Saw a parcel of land in Kerr county and my Realtor sent me info on it. I think it appraised for $63,000 and was listed way above $100,000. I guess that’s ok if your guaranteed that type of return on resale, should you ever need to.
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Old 12-21-2019, 08:33 AM   #7
Big pig
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Tax numbers mean very little.
BP
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Old 12-21-2019, 08:35 AM   #8
Hogmauler
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Except when your having to pay taxes on those numbers!
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Old 12-21-2019, 08:44 AM   #9
Briar Friar
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Demand. Market dictates value...until an appraiser working for an underwriter says otherwise. Its only worth what someone is willing to pay or what someone is willing to loan on it.
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Old 12-21-2019, 08:51 AM   #10
cwashby
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Both of these statements are true, to a point. County Tax appraisals are generally fairly close on homes in subdivisions, as they have a lot of comps to use. Land is a lot more difficult for them as there may or may not be similar properties that have sold. Even of the ones that sold, they may not have accurate comps as alot of the land deals are not done through the MLS, so they don't get reported.
But, as stated earlier, land is a supply and demand commodity. They are not make anymore. THEN you have developers buying large tracts and subdividing into 1-10 acre tracts. So the larger tracts get even more scarce.
Bottom line, everyone has a story of " my Dad could have bought that land at _____ price". Your kids will be saying the same thing!
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Old 12-21-2019, 08:55 AM   #11
az2tx
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Example If you have a 10 acre piece of ag land with live water running thru it and goats on it, the taxable value will probably low but the actual value for a home site would be fairly high
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Old 12-21-2019, 09:07 AM   #12
RascalArms
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Keep in mind the CAD only appraises the property once a year. Any improvements to the land after the appraisal time arenít necessarily calculated or considered until the next taxable year. Some CADs are slow to make the adjustments.
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Old 12-21-2019, 09:15 AM   #13
friscopaint
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Prices around me are all over the place. I couldn't afford my 30 acres now and bought 7 yrs ago. I'm north of dfw and growth headed my way and selling in 3 yrs. Amazing numbers of houses being built, relatively speaking. Bigger parcels getting broken up, 30 acres 2 miles away putting in 1 acre lots folks from town feel like they are on the ponderosa.
When we bought it was 80 acres and wife asked for 30 and house and barns and they said yes. She looked at ones way out of our range. We paid $320,000. The 50 acres went for $300,000 and now listed for $700,000 in 6 yrs
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Old 12-21-2019, 09:18 AM   #14
friscopaint
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That being said mine is much nicer with trees, creek and big pond so its worth more. 50 acres next door will eventually be split into 4 tracts so likely an investor will buy and hold, thats driving alot of prices here and new tollway coming 4 miles away.
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Old 12-21-2019, 09:18 AM   #15
Throwin Darts
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Iíve been in real estate for 16 years and can tell you the tax appraised value means nothing in determining what a piece of dirt is worth.


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Old 12-21-2019, 09:20 AM   #16
friscopaint
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Quote:
Originally Posted by RascalArms View Post
Keep in mind the CAD only appraises the property once a year. Any improvements to the land after the appraisal time arenít necessarily calculated or considered until the next taxable year. Some CADs are slow to make the adjustments.
Grayson caught mine and back taxed me for 2018 and increased 2019. $6,000 2018 tax bill in mail and that was for the increase. They retroed mine. **** google earth
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Old 12-21-2019, 09:21 AM   #17
friscopaint
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Quote:
Originally Posted by Throwin Darts View Post
Iíve been in real estate for 16 years and can tell you the tax appraised value means nothing in determining what a piece of dirt is worth.


Sent from my iPhone using Tapatalk
Mine is appraised at almost $900,000 and I wouldn't take that for it.
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Old 12-21-2019, 09:51 AM   #18
Preacher Man
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Quote:
Originally Posted by Throwin Darts View Post
Iíve been in real estate for 16 years and can tell you the tax appraised value means nothing in determining what a piece of dirt is worth.


Sent from my iPhone using Tapatalk
I've been in real estate for about the same amount of time. This is one of the first things I was taught. Taxable (assessed) value is a different type of value as compared to Market value. They are developed differently.

A list price can be any number under the sun. So all this needs to be taken with a grain of salt when being compared to one another.

If a market value appraisal has been completed to help set a list price and the list price is significantly higher than the opinion of value in the market value appraisal, somebody is fishing with no bait......
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Old 12-21-2019, 09:59 AM   #19
Hogmauler
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So the market will ultimately determine value?
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Old 12-21-2019, 10:02 AM   #20
BTLowry
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Land around here is selling for around $12K/ac because of demand

No way it would be worth that to me BUT apparently it is to some because it keeps selling
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Old 12-21-2019, 10:09 AM   #21
Hogmauler
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Same in the hill country. My friend Tony Pic basically says I have champagne taste on a beer budget and he may be right. It appears that nowhere in Texas will land prices drop significantly. What you wind up with is everyone has a five acre deer lease.
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Old 12-21-2019, 10:10 AM   #22
crxshooter
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We have a little over 300 acres here in Bastrop County. At least once a month, sometimes more, we get the "I wanna buy your land" letters from the "retired couple in San Antonio, the retired couple in Austin" and some from land buyers. One sent an offer on 82 acres that was the same as the appraisal district value. I answered back that we would consider 8 million and would retain the mineral and hunting rights. No response...........as of yet.
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Old 12-21-2019, 10:15 AM   #23
Hogmauler
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Dang it CR! That’s just wrong to do old folks like that! Btw, I have a 2008 Tundra with a shell that I’ll trade ya for 10 acres. Maybe nine. My windshield is cracked.
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