I understand why you would do this. It might be the best data available. But it is also fraught with risk, just like looking at Zillow or Redfin.
We upended the entire market, at least according to Zillow and Redfin, when we purchased the "other" 50% equity in our ranch property from a family member. Zillow and Redfin could not or did not discover the sale was only for 50% equity-- so it appeared a regular sale had happened but at a much lower price. That threw off their reported numbers for lots of properties in the area. There are many examples of other ways the numbers can be thrown off.
Regarding tax cost, I've only had experience in the CA and NV markets. I've never used tax cost as a way to determine value-- too many variables.
A lot of buyers look at what other similar properties are being marketed for. But that only gives you asking prices, not sold prices.
A professional appraiser has access to all the prior "sold" comparable properties and ways to adjust for differences. And an appraiser would pick up that our property was for half equity. So, for about $300, you can get the best data possible by ordering an appraisal.
I do understand that we all do the best we can when looking at many properties-- and usually only do an appraisal when narrowed down to purchase time.
Funny you mention Zillow and Redfin.
Yes, look at both sites, and there is some misleading info on our own house.
I went to redfin to change the 3 bedrooms to 4 bedrooms, and the 2.5 baths to 3.5 baths, and it jumped the "appraisal" substantially higher. The other thing those two sites have incorrect is the amount of land. Listed is 6 acres, where they missed the other 30 plus acre tract that we bought with the home. Nothing more than garbage in, garbage out I understand.
When I did talk to a professional real estate appraiser (not an agent) he told me generally in his experience at the very BOTTOM of selling price, figure at least 100K over tax value. He told me he wouldn't touch me with any numbers until I was ready to sell because whatever he gives me now could change substantially 5 years from now.
I do have a realtor coming over to give us suggestions in the near future. At least in NC, our furnished walkout basement apparently doesn't qualify as an additional story on the home. Kind of interesting because the basement has a bedroom and full bathroom as well, but perhaps why they only listed it with 3 bedrooms. However, they did have 3,200 square feet listed for the home which includes the basement, so not sure how the square footage contradicts the bedrooms and baths.
We paid about 370K in for our home and land back in 2005. With the rate of inflation to 2024, if we can't get at least 575K for the home, I'll be darned if I sell it. Keep in mind, the rate of inflation does not account for the interest rate that we had to pay on the home and land.
When we bought the house in 2005 I just prayed we wouldn't lose money on the money paid because it was a crapload. Now I'm getting to the point that even if we break even, I'd contemplate at looking at building something on the property and just leave the house dormant where we're living at now and not sell.
