SEV versus Actual Selling Price

[David Roberts]

This might be  a silly / stupid question but I'm going to ask it anyway, because frankly, I just don't know the answer.

In the area that I'm looking for a rental property, using Zillow as the source, the property tax info is listed, and the SEV value is lower than half the selling price.  Is it accurate for me to say that the city values the home less than people are willing to pay for the home?

Example, one particular house 2013 SEV listed as 33,400 which was 4.8% lower than 2012.  I would assume property values still may be falling a bit in this area per the city assessor.  This particular house was listed in June at 130, and is now down to 112, and they are moving south and need to sell (they say so in their listing).  I am going to look at it tomorrow, but I don't want to overpay.  I drove by it last night and it looked nice on the outside.  Brand new roof.

A  very comparable home of same type and sqft on the same street just sold for 105k yesterday.

I am thinking to start at 100k and then subtract all repair costs that I find, but this is just a guesstimate without seeing the inside first.  Might even start lower, but I don't want to start at something unreasonable.

Opinions are appreciated.

One other thing, do you find that finished or partially finished basements fetch you more rent than unfinished basements?

Thanks guys.

This will be my very first actual buy for investment properties, and I'm nervous as heck, but I think after I do one and critique my strategy, the ensuing ones will get easier.  I'm just trying to be very cautious.

[Jon Holdman]

My opinion is that tax assessor data is completely useless for establishing property value.  Those values are for collecting taxes, not buying and selling.