In today's volatile real estate climate, buyers are working hard to educate themselves to ensure they make a wise purchase decision. One of the most available sources of property valuation is the County SEV or State Equalized Value of a given property. While I understand that buyers look to this number as a valuable source of information, it's very important to recognize that it's not usually a very good indicator of actual market value. It's simply impossible for a local assessor to individually evaluate each property and take into account many of the factors a potential buyer may see as vital. Quality of view, forest type, level of privacy and condition of the buildings are just a few items an assessor does not have the benefit of knowing when valuing a property. They're using raw data on paper to weigh properties against each other. I recently pulled the data of all the sales on The Upper Manistee River for a client who is placing an offer on a property there. The findings did not surprise me, but I think it's worth sharing with potential buyers.
SEV, Assessed Value (SEV x 2), Actual Sales Price, Difference
$94,900 $189,900 $120,000 -36%
$66,200 $132,400 $133,000 +.4%
$84,400 $168,800 $185,000 +9.5%
$86,300 $172,600 $227,500 +31.8%
123,000 $246,000 $325,000 +32.1%
The property that sold for only $120,000 and had an SEV of $94,900 was a manufactured home that needed a new roof system and had some interior water damage. I have no idea how they determined it's value to be higher than that of almost every other property that sold for more, but it's a perfect example of the inexact science that goes along with determining an SEV. I'm not saying these numbers apply to all market segments or that it will always be the case, but it hopefully provides some insight that should be taken into account as you go through this process. Good luck in the hunt for your property! Please get in touch with us if you need any assistance.
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