Do you consider assessment when making an offer?
I am looking at homes in a neighborhood where the tax assessments have been decreasing (-13% since 2011). It's an area of town that has traditionally been working class and known for good housing value, but obviously not a prestige part of town.
2008 $171,300 (new 2nd bath, finished basement)
2003 $140,000 (last sold)
I've checked properties in other parts of town (Madison, WI) and assessments have pretty much stayed the same in the last couple years. Is the decrease in assessment value cause for concern? Or could this just be the assessor "right-sizing" after the housing bubble? or a reflection of sold foreclosures?
I think I'll call the city assessor's office to see if there is a reason identified for the decreases, but I've not heard of anything upcoming that would negatively affect property values.
How should I use this information as I consider buying a house?