When reviewing property data in the Land Insights Comping Tool, you may notice that the comp value can sometimes be significantly different from the county’s assessed value or the last purchase price. This difference is normal and reflects how the system calculates value based on real market activity.
Below is an explanation of why this happens.
County Assessed Value vs. Market Value
A county’s assessed value does not always represent what buyers are currently willing to pay for a property.
In many cases, counties intentionally assess properties at higher values because property taxes are calculated using the assessed value. As a result, the county’s valuation can sometimes be much higher than the actual price buyers are paying in the market.
Because of this, county data should generally be viewed as a tax assessment reference, not a real-time indicator of market demand.
How Land Insights Calculates Comp Values
The Land Insights Comp Value is calculated using real sales data from comparable properties that have actually sold.
Instead of relying on assessed values, the system analyzes:
Recent sales of similar properties
Comparable parcel characteristics
Market activity in the surrounding area
This approach ensures the comp value reflects real market transactions, not tax-based valuations.
Example
For example:
A county may list a parcel with an assessed value of $8,000
However, recent comparable parcels in the area may be selling for around $1,000
In this case, the Land Insights comp value will be closer to $1,000, because that reflects what buyers are actually paying in the current market.
About the AI Market Value
The AI Market Value is designed to provide a helpful reference point based on millions of comparable sales.
However, like any automated valuation model (AVM), it may not be perfectly accurate in every scenario. Factors such as unique property characteristics, local demand shifts, or limited recent sales can affect estimates.
For this reason, the AI value should be used as a guide alongside other research, rather than a definitive appraisal.
Key Takeaway
If the comp value appears lower than the county assessment or last purchase price, the system is likely accurately reflecting current market demand based on real comparable sales.
The Land Insights comping system is designed to prioritize actual market data, which often provides a more realistic picture of what buyers are currently willing to pay.
💬 Questions or need help?
If you have any questions, concerns, or run into issues with ownership data, our support team is here to help.
📧 Email us at: [email protected]
We’re always happy to assist.🤠