How does Assessed Value relate?

[Jamal Atwell]

So let me preface this by saying I'm still new to the forum and learning the in's and out's of flipping. With that being said...

If you look at a real estate assessment website I see the land value, improvement value, and total value. I take this as meaning... the land value, the improvement value is the value of the home, and the total value is the value of the home on the land combined. Hopefully I understand that right...

Now when I look at redfin, trulia, zillow, ect. and I see a home selling for lower or higher that the total value is that good or bad? I typically see a lot of homes selling for higher than the total value. Is that an inflated price due to value... What should I look out for?

Thanks to anyone who can help. I really appreciate it.

[Account Closed]

Check with your local taxing authority. Generally assessed values have little to do with market value. In CA your purchase price generally sets your base assessed value that can't be increased by more than 2 0/0 a year. You can have properties valued at tens of millions that are assessed under $100, 000 and that is what they pay taxes on. You can also have a property assessed at $800, 000 with a market value of $600, 000.

Don't confused assessed value with appraised value.