Assessed value -cost of construction

[StillHope]

Aloha,everyone!
Please,forgive me if I ask too many questions.
They all have a very practical purpose:I am trying to build something I can afford and actually like.It might be not possible in my case.I will accept it and move on.
I looked at the TMK of the house I recently asked about.It was built in 1999 and the assesed value is $54900.
I understand that the prices on labor and materials are probably different now.And it has a cesspool,My area requires a septic tank.
I also understand that different factors might be included.
All I need is a general " rule of thumb" I can apply in my preliminary search:
if the house is assessed,say $ 100000 in year 2008,can I build it for the same money in year 2008?
I am just a woman with no construction knowledge.
And I have a confession to make:when I look at a plan,I don't see he house like in the picture.I am not dislexic ...It's just "not my forte".
P.S. I know that the price for a basic house is about $130/sqft.My ? is alittle bit different.
Thank you in advance for your time.

[John S. Rabi]

Forget the "Assessed Value" because it means nothing. It's a figure that the County of Hawaii is using to tax you on.

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

[StillHope]

Aloha,John!
I understand the purpose of the assessed value and the very approximate figures of it.Buy no means it should be taken "as is".
But the figures are not pulled out of thin air,I would assume.
Are they at least 90% true? 70%?
Anyway,I am not qualified and don't want to discuss the government taxation system or real estate system.
My ? was about the house on Mapuana.(MLS # 178990).
Anyway,thank you for your time.

[John S. Rabi]

It really doesn't matter what MLS or TMK number you use or ask about. The assessed value really has nothing to do with the real value. If you get a Comparative Market Analysis from your agent you will be surprised how right I am! []

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

[Francesca]

You can trust that what John is saying is correct. The two have nothing to do with one another. What we paid for our house and the amount we pay taxes on is completely different. The value we are taxed on is much lower, which is nice.

I've been trying to figure out how much it is going to cost us to build a small, simple home. What I'm hearing is that if using a builder the cost is $130 per sq. ft (turn-key, but not including site prep) and if owner/builder then it's somewhat less, however it's difficult for anyone to tell me how much less per sq ft since there are so many variables. For instance, we plan to do some of the work ourselves, but will sub out most of the big stuff. We're thinking we can handle the painting (inside and out) and some other more minor things. So, the cost will depend on how much we end up doing.

In regard to plans...I'm also challenged when it comes to visualizing what something will look like in reality. Most people I know have a much easier time with this. I feel like I'm "imagine if you will" challenged. I just can't seem to "see" the proposed plan or idea. It's very frustrating and kind of scary since I'm worried I won't like something once I see it for real and then be stuck with it. So, I'm just telling myself to trust my family members (who are able to visualize things quite well) and I'm also thinking that whatever we come up with will be good enough. Once you live in a place for a while you don't notice all of the little details. At least I never do.

[Carey]

If you are able to get to the county tax records on the property you want to copy, go to the sketch portion & it will give you a fair idea of the outside dimensions, then just figure the sq footage & use the $130/foot to get a rough idea of the cost - the tile flooring & extra windows (I am making an guess that there were more than the 'normal' windows, as you had described this house as 'light & airy...) will raise the price... but that is something you can take into concideration.
Also, if you can find out who the builder was from the building dept., (this may take a few weeks, depending on how booked up building dept is....) you may be able to contact the builder on the particulars of this house.... (just realized KapohpCat answered the designer/& that it was owner builder....maybe you can find out from the owners who built the house)

[StillHope]

Thank you,Francesca and Carey!
I didn't doubt John Rabi even for a moment.Not only because he is respected in this community. Just look at his website - fundamental.
We simply viewed the same object from the different angles.
I was not going to use the assessed value as a guide to action.But if there is no system in assessing,then a person who does it has enormous power to make the value of his friends' houses less and more for those who he(she) doesn't like.
What was trying to say in my previous post,that it should be some co-relation, system.
Just an example.Levi's jeans company used to make shrink-to fit jeans.They had "XX" on the tag(not to be confused with...)
Usually under the normal washing/drying they shrunk 2-3 inches in length.So if I need size 32/31 I should buy 32/33 or 32/34.The extreme temperatures of the dryer can result in up to 4 inches shrinking.
But that was it!
So it was no exact estimate,but using this knowledge,the customers were getting the right size.
Francesca,you said your house assessed value is less.I know some examples of that tendency too.
But here is a very interesting example.
The assessed value of the 30' yurt house in Kalapana Sea View I was trying to buy (no luck with a lender on "unconventional" structure)
was $49500 (MLS # 172003-sold after almost 2 years on the market).If this is less...
Did I just give the example that there is no system?
Anyway,in this case I want to be a friend of that assessor!
Does anyone knows when is his birthday?

[Kapohocat]

quote:

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Originally posted by Carey...
Also, if you can find out who the builder was from the building dept., (this may take a few weeks, depending on how booked up building dept is....)..

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Carey - you just have to go to the real property tax website - plug in the address or TMK # - and on the right hand side of the page will say " Generate permit reports". All BP info is listed.

Catherine Dumond
Blue Water Project Management
808 965-9261
"We help make building your dream home a reality"

[mella l]

Francesca many have the same challenges as you do in visualizing from a one dimensional floor plan. An example is buying a piece of fabric you love for a dress, making the dress and the pattern just doesn't look right in the print selected. I do believe visualization is a talent like any other and can be enhanced, perhaps not to the extent of a builder, architect, or artist, but practice makes it more comfortable. That being said, deciding on a home of your own sight unseen is a scary encounter!

Stillhope I do not believe there is a formula for "whatever the buyer is willing to pay", and therein lies the problem.

Good discussion thanks!

mella l

[jdirgo]

"Assessed value" is supposed to be based on a fair-market value adjusted for things like age, effective age (I have an 84 year old house whose "effective age" is only 20 per the county because of remodeling work done). It is not an exact science by any means.

Also, be aware that in the County of Hawaii, "owner-occupied" properties are limited to a 3% or less increase in accessed value each year. So, even if property values in the neighborhood have doubled in the last 5 years (using a mathematically simple example), you may have a rental property assessed at $300,000 with an identical "owner-occupied" house next door only assessed at somewhere in the area of $175,000.

The only time the assessed value should be considered is when you get your tax bill. Review it then, try to learn what similar properties in the area have actually sold for, and if the County is way off base on your assessed value, file an appeal. If the assessed value on the bill is a reasonable market value or below that, happily pay the bill and move on. Be sure you are getting the proper property tax exemptions if you're living in the house (file for those if you are not) and otherwise ignore assessed value.

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