Assessed value -cost of construction

[StillHope]

Thank you,John for a very professional answer.
It's a useful information.
There is only one discrepancy :
I was not talking about the HOUSE market value.It includes a lot of factors:location,view,lot size,landscaping,rusty cars next door..You name it.
I was talking about the BUILDING value(though some of the factors you mentioned applies).
Buy the way, my perfect house quality is assessed as "poor"(????).
But I am still in love with the house.I wish I can buy it and move to my lot,which is much better.
Back to the point.
As you pointed out there are many factors included in the assessed value .It requires profound professional knowledge of the real estate market,government taxation system and construction business,to make the connection between the assessed value and the cost of construction.
Here is the idea.
Everyone have seen the mortgage calculator.
Someone with the expertise in the above mentioned fields and computer programming can do the same type calculator on the subject:
year buit-click!;
owner-resident(3%)-click!.....
Well.It's a 99% a joke..But John,with your background-piece of cake!
(I've read about you on the website.I think you are being too modest.)
Anyway,I got it:without the above mentioned knowledge it is not possible for me to get the answer.
Thank you everyone for participation.
Nice to talk to you all.

[Bob Orts]

As unmentioned, the assessed property tax amount has no bearing on the value of the actual property. One thing property tax assessed value does not cover is the quality of the building interior. Two houses built at the same time, same exact floor plan, maintained over ten years at the same level, and none having any changes to the structure, land or utilities, could be worth different sale or construction amount. One could have $2 a square foot flooring and the other $20 a square foot flooring. One could have Formica countertops and the other imported rare Italian marble. One has plastic shower enclosure, the other travertine tile. And the list goes on and on. Tax assed value really does not look in the interior value of the property

Also consider as John mentioned the issue of property tax and those who work the system. Each year when I get my tax bill, I challenge any increase as too much. And if it's reduced, I will challenge it as not being enough. Others do nothing so over the years their assessed value may be disproportionately higher than mine. Is my house worth less as far as building? Nope, I just don't want to pay anymore taxes than necessary. But in no way does it reduce the cost of my property, just what I'm paying in taxes.

Bottom line is, assessed value is really just a taxing tool for government with so many variables that it can't be used for determining the cost of a building.

[John S. Rabi]

quote:

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Originally posted by StillHope

Buy the way, my perfect house quality is assessed as "poor"(????).

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You will laugh. One of my new houses that I recently built is indicated as "Quality: Poor" in the tax records. Needless to say, I am not the one to call them to complain! []

Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"

[jdirgo]

I think the BEST I've ever seen on the County report is Condition: Fair. Most things seem to be Poor or Poor+ (is that like getting a D+?).

John Dirgo, R, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com