How accurate are the Wake Gov assesed property values? (for sale, real estate)

[gcbrink]

We're interested in a new home in Wakefield Plantation. It's been sitting empty and for sale for approximately one year. We've seen the asking price inexplicably raise from $629k to $700k during this time. The Wake Gov website says the home's assessed value is $555k. Who's closer to reality?

[rfb]

Potentially neither. The only accurate price for a home is the one someone is willing to pay. The best way to estimate that is to look at comparables, and then adjust based on the perceived benefits or detriments of the home in question. A good real estate agent can help you through the process.

[Chicky]

I'd have to ask, closer to reality for what? A house's true value could be what other people will pay for it, so if it sells for $700K, then at that moment, it's worth $700K. The tax appraisal is different than what a real estate appraiser might set the value at, and individual sellers and buyers set their own value, as well. Any number of factors might explain the change you've noted - did they do any work to the home or property? Did the number of available houses decline?

[DanielChang]

I'd try to find recent sales to use as comparables, rather than either tax value or list price.

[gcbrink]

Originally Posted by Chicky

I'd have to ask, closer to reality for what? A house's true value could be what other people will pay for it, so if it sells for $700K, then at that moment, it's worth $700K. The tax appraisal is different than what a real estate appraiser might set the value at, and individual sellers and buyers set their own value, as well. Any number of factors might explain the change you've noted - did they do any work to the home or property? Did the number of available houses decline?

Thanks. No, as far as we can tell, the house has been sitting in the same condition it was in when originally built. If anyone cares, it's MLS Number 1618147. Also, there's many of the same new homes still on the market in this neighborhood today as there were back in February (when we last visited). I wonder why in a buyer's market the price has been raised, not lowered.

[ljd1010]

We checked out the site before and after the purchase of our home (closed in May). About a week or so after our closing, the sale and sale price along with our names were updated on the property. I was checking just the other day, and now the listed information has reverted back to the previous owner and what SHE paid for the property in July 2006!! No clue why....

[VickiR]

Originally Posted by gcbrink

Thanks. No, as far as we can tell, the house has been sitting in the same condition it was in when originally built. If anyone cares, it's MLS Number 1618147. Also, there's many of the same new homes still on the market in this neighborhood today as there were back in February (when we last visited). I wonder why in a buyer's market the price has been raised, not lowered.

As to the "why has the price been raised instead of lowered", I'll give you an example.

If you have a house that is in a price range that buyers expect to find granite countertops and stainless steel appliances and your sellers have neither, sometimes sellers will pay to have these things added and then they will raise the price to cover these items. It isn't always a bad idea and sometimes it works. However, it depends on what other "negatives" the potential buyers perceive the house to have, to determine if this is worthwhile or not.

I don't know if this is the case in this situation but just an example of the "why". The other reason is that some sellers are just crazy!!!

Vicki