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Tony The Tiger
Houston Astros Fan
Northshore
Member since Sep 2003
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Purchasing new construction: question about residential real estate
I was recently relocated to the Covington/Mandeville area and came across a home in an upscale neighborhood, recently built (within the last year). The seller is asking approximately 20% more than what the assessor lists as the total value of the property (land and house). For the house alone (not including land value), it equates to a 36% bump. Seller is not willing to budge on price.

Is the assessed value the true cost the homeowner paid to build the home? I am not necessarily worried about it appraising for the asking price as much as I am concerned I am buying on the high end.
This post was edited on 7/10 at 10:13 pm


Geauxtiga
TBD Fan
No man's land
Member since Jan 2008
33848 posts
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re: Purchasing new construction: question about residential real estate
quote:

Is the appraisal value the true cost the homeowner paid to build the home?
Probably not. My house is worth more now than when I built it 20 yrs ago.

Quit worrying about him making money and decide if it’s worth it to you...or walk away.
This post was edited on 7/10 at 9:52 pm


ItzMe1972
Member since Dec 2013
2513 posts

re: Purchasing new construction: question about residential real estate
Assessed value is typically low.

An appraised value is an opinion of the current fair market value of the property. This is based on recent sales of comparable houses.
This post was edited on 7/10 at 10:10 pm


Tony The Tiger
Houston Astros Fan
Northshore
Member since Sep 2003
2007 posts
 Online 

re: Purchasing new construction: question about residential real estate
Sorry, used the wrong lingo. I should have said Assessed value, not appraised.
This post was edited on 7/10 at 10:13 pm


ItzMe1972
Member since Dec 2013
2513 posts

re: Purchasing new construction: question about residential real estate
Can you ask your question again?


Tony The Tiger
Houston Astros Fan
Northshore
Member since Sep 2003
2007 posts
 Online 

re: Purchasing new construction: question about residential real estate
quote:

Quit worrying about him making money and decide if it’s worth it to you...or walk away.


New to the area, so it isn’t about him making money as much as it is me making a good decision. Your advice though is solid.


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Tony The Tiger
Houston Astros Fan
Northshore
Member since Sep 2003
2007 posts
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re: Purchasing new construction: question about residential real estate
quote:

Can you ask your question again?


Is the assessed value an accurate representation of what the home owner paid for the house? You answered the question though above... thanks
This post was edited on 7/10 at 10:19 pm


ItzMe1972
Member since Dec 2013
2513 posts

re: Purchasing new construction: question about residential real estate
On recent sales the assessed value is pretty close or the same as what the seller paid.

Call the tax assessor for the parish. Tell them you would like to know who owns the property at the address and what they paid for it and when. They will gladly give you that information. Then you'll know!

Good luck.


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East Coast Band
Alabama Fan
Member since Nov 2010
38305 posts
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re: Purchasing new construction: question about residential real estate
zillow may have it, or you should be able to find the price that was paid a year ago on county / parish tax parcel maps.

Sometimes, you can argue with the tax assessor to have your value lowered (thus taxes lowered) for any certain reason.
This post was edited on 7/10 at 10:52 pm


LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
2114 posts
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re: Purchasing new construction: question about residential real estate
My assessed value is around half of what the property appraised for. So it doesn’t represent value at all IMO. I’m happy because my taxes are way lower.


rodnreel
LSU Fan
South La.
Member since Apr 2011
987 posts

re: Purchasing new construction: question about residential real estate
Assessed value on new construction is an educated guess by the assessor. They use the sq. ft of the structure either by measuring or from the plans and come up with a value per ft. With a few exception they don't take in consideration the interior of the house.

As you know custom items such as appliances, floors, windows, counter tops and cabinets can easily add 30% or more to the cost of a home vs. standard items found at big box stores.


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El Magnifico
LSU Fan
La casa de tu mamá
Member since Jan 2014
3802 posts

re: Purchasing new construction: question about residential real estate
Appraisal would be more accurate than an assessor's valuation. That seller will have a hard time selling it for anything substantially higher than the appraised value.


mikie421
LSU Fan
continental shelf
Member since Nov 2008
393 posts

re: Purchasing new construction: question about residential real estate
Where is the house?
I’ll give you an average cost per sq. Ft. Based on the neighborhood.


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bbvdd
Alabama Fan
Memphis, TN
Member since Jun 2009
17035 posts

re: Purchasing new construction: question about residential real estate
Assessed value is something that a bureaucrat thinks a house is worth.

To gauge actual value you have to look at recent sells to determine $/sq ft.

Then there are additions or subtractions based on the finishes.

Also, depending on when the buyer bought the house, he may have gotten a better deal. For example if he bought the house when the neighborhood 1st got started he probably was able to get it cheaper since there would be more construction around him and the neighborhood wasn't established.


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
14324 posts

re: Purchasing new construction: question about residential real estate
My assessed value is about 400k south of my market value.


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