In our search for properties with exceptional value that will offer our investor clients a better than average Return on Investment, Florida Investment Real Estate professionals pay close attention to Assessed Property Values .
The Assessed Property values are used by each County in Florida to determine the value of the property for real estate taxes only. The methods for determining the Assessed Value of a Property are mandated by the Florida State Legislature. The system is supposed to be fair and uniformly applied so that all property owners pay their fair share of real estate tax. The Florida Statutes to derive Assessed Value.
The Assessed Property Value should not be confused with the market value of the property. However, analysis of historical trends shows that averaged over the market there is a consistent relationship between the Actual Price at which a property is sold and the Assessed Value of that property. On average, Assessed Values are approximately 80-85% of the value which one would expect upon the sale of the property.
This is evident from examining the historical trends. As an example, we reviewedthe property trend lines in Hillsborough County, Florida
We stress that the correlation is based on market averages. Individual properties may vary considerable. So, at Florida Investment Real Estate we use the Assessed Value as an indicator, but we understand the importance to evaluate each property on its own merit.