I looked up a 1 bedroom unit for rent that I will be viewing shorty, and the assessed value of the multi-unit building on the property is only $15k! The property has 2 buildings with 2 1 bedroom units for building. Why would the building on this property be valued so low? Here are the numbers for the property:
Current land market value: $456,100
Current building market value: $15,800
Total value for property: $471,900
Current land net taxable: $456,100
Current building net taxable: $15,800
Current total net taxable: $471,900
Previous year land market value: $505,400
Previous year building market value: $15,800
Previous year total value: $521,200
Previous year land net taxable: $505,400
Previous year building net taxable: $15,800
Previous total net taxable: $521,200
Land class: Non-Homeowner
Assessments for tax year: 2010
Land area: 12,209 square feet
Is it a red flag for the assessed value of a building to be valued at $15k?
Red flag for what? A well connected property tax cheat?
A low assessed value could mean a lot of things. Assessors only walk the outside of a building to judge it and even then usually use a set formula to find a value. It doesn't always having a basis in reality when judging the quality if that's what you're asking (source - friend who works as an inspector/collects data for county auditor)
Around where I live that land value would be a red flag. I don't think even a .25 acre of riverfront property near the heart of the downtown skyscrapers would sell for that much lol.
A low assessed value could mean a lot of things. Assessors only walk the outside of a building to judge it and even then usually use a set formula to find a value. It doesn't always having a basis in reality when judging the quality if that's what you're asking (source - friend who works as an inspector/collects data for county auditor)
Around where I live that land value would be a red flag. I don't think even a .25 acre of riverfront property near the heart of the downtown skyscrapers would sell for that much lol.
It really depends a lot on your local assessment rules. Around here they price primarily on square footage and age. So an old small building would assess low, regardless of condition. Also buildings here are assessed at 30% of value, so the real value is assumed to be at least 3x what is on the assessment. Like BW said, they don't see the inside to do the assessment. I agree the land value worries me more. Why is the land so expensive?