Why do tax appraisers not appraise a property based off of its real-world valuation at the time of appraisal? Why is there such a huge disparity between tax appraisers and real-estate appraisers for sale?
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The real world value is by definition the price of the sale when it occurs.
1. Not every property sells at the same moment.
2. Property value is a fascinating and complex thing and even large data sets cannot reflect the actual value at sale.
3. All of the properties and all of the taxes are set on the same day, after that date no new information is incorporated.
4. In a period of time where homes are selling for above asking prices the general value of appraised homes will be understated.
5. In a market like 2007 there were homes selling for less than the previous purchase price. The general stock of home are undervalued.
6. Political and non governmental actors make policies that impact the demand and supply for homes.
7. Socioeconomic trends such as people moving at retirement change the market place.
I live in Florida and home prices here have been growing faster in prices than a place like Ohio
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