Should Foreclosures be Used as Basis for Assessed Value?


I have seen this debated a lot recently. Obviously, foreclosures have a negative effect on property values……..and assessed values are supposed to be based on “market value.”

One approach developed in Milwaukee is getting attention. Its key guideline is that foreclosures will be factored into valuations if they represent more than 10 percent of transactions in a neighborhood. Assessors say the Milwaukee approach not only aids home buyers and sellers, it also ensure that tax assessments for other home owners are fair.

Michael Dodds, MAI, CCIM, MRICS
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