Comparing homes assessed value with neighbors homes

[Benjamin Walter McPhail]

So I am looking at buying a home listed at 150k with an assessed value at 135k.  The next lowest assessed home on the same street is 195k. The neighbor homes are also similar in square footage and the number of beds and baths. Most of the homes are assessed over 200k.  The house is in good condition but a little dated.  There is a fenced in front yard with over grown grass that hasn't been trimmed so it does not have much curb appeal.  Should this be a no brainer as far as being willing to put an offer in or should I be more cautious about it.?  

I am looking to rent right away and overtime update the home and sell for profit.  What are your thoughts?