Tax Appraisals

A value from the taxing authority alone is typically insufficient to be considered an evaluation.  As previously noted, an evaluation report should include calculations, supporting assumptions, and, if utilized, a discussion of comparable sales.  It should describe the real estate collateral, its condition, and its current and projected use.

Restricting the size of a loan to less than the tax-assessed value alone does not comply with the appraisal regulations.

A Bank that demonstrates that a valid correlation exists between tax assessment values and market values may use such information to develop the market value conclusion in an evaluation.