LandInvestors.com Forums $10K a Month for Life; Cash Flow From Land Chapter 5 – Cash Flow From Land County assessor/ millage rate/ afraid I'm going to sound dumb

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    Claire
    Participant
    Post count: 138

    @stevenbutala

    Hi Steven and all,
    Just doing a RealQuest search, and watching the DVD I wanted to get a little more information on what to ask the county assessor so I can target the right assessed values. I’m really not sure what to ask. Do I just say “What is your millage rate?” Or do I ask, “What/how would you assess a very rural 5 acre property?” I don’t want to bug Cheryl, my chosen county’s nice tax assessor, with a question if I don’t really know what I’m asking.

    Once I have an understanding of how they value their land, how does that translate to choosing a maximum land value on RealQuest?

    Have any of you students talked to assessors about their methodology?

    A little more direction would be great. Thanks so much for all the guidance so far.
    Claire

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  • Jill DeWit
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    Post count: 439
    ProAdvancedStaffPrincipal

    Jill here. I never ask the county. The assessed value is only for tax purposes. If you notice in the program when we talk about finding out value of a property, the county is never mentioned. They really have no idea what something is going to sell for.

    Steven has shared some of his formulas in this blog:

    Hope that helps!

    Claire
    Participant
    Post count: 138
    Pro

    Thanks @jilldewit. That makes complete sense and I understand not to use the assessed value in my own calculations about what to offer/pay to the seller, but I was more concerned about using the assessed value to do a Custom Search in RealQuest, in order to avoid properties that are urban or something special.

    In the package, Steven uses 10,000 assessed value as a cutoff for 5 acre properties in Mojave Co. when choosing what to download. I chose to do the same thing for my current data download.

    I’m planning to do a county in the upper midwest eventually, and might adjust the cutoff upward to capture more properties from RealQuest. These assessed values wouldn’t be used to calculate my offer price–you guys have definitely taught how to choose offer price based on landwatch and eBay completed sales. 🙂

    Matt
    Participant
    Post count: 1

    Since the assessment values and methodologies can vary county to county and state to state, one method I have heard is to take a property from that county and derive the difference in ratio between what the estimated market value is.
    Then compare that ratio to other similar properties and you should end up with a basic assessment ratio for that county.

    For example $10,000 assessment value – $100,000 market value = 1/10 ratio
    This ratio should be consistent throughout the county since whatever assessment methods the county is using should be pretty much the same for all the properties in that county. Therefore $4,500 assessment value = $45,000 market value ect.

    Hope that makes sense.

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