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I'm looking at homes in New Jersey and in the MLS listing the combined (land and building) assessed value is listed. How is it that many of these properties (mostly in the $225-$245K range) typically are priced $40-$60K ABOVE their assessed value? I get that the housing is in a high demand area, but that seems like an awful wide margin. How much bargaining power does the assessed value give me in a transaction? I would think that since the properties are valued so high in the first place that realtors and sellers don't pay much mind to them, but take for example the following house:
High Bridge, NJ - Listed at $224,900 and assessed at $184,600 which is a difference of $40,300. So would I be out of line to offer $200,000 hoping to get a counter offer of about $210,000?
I'm looking at homes in New Jersey and in the MLS listing the combined (land and building) assessed value is listed. How is it that many of these properties (mostly in the $225-$245K range) typically are priced $40-$60K ABOVE their assessed value? I get that the housing is in a high demand area, but that seems like an awful wide margin. How much bargaining power does the assessed value give me in a transaction? I would think that since the properties are valued so high in the first place that realtors and sellers don't pay much mind to them, but take for example the following house:
High Bridge, NJ - Listed at $224,900 and assessed at $184,600 which is a difference of $40,300. So would I be out of line to offer $200,000 hoping to get a counter offer of about $210,000?
In most cases, the assessed value has little or nothing to do with he listing or sale price.
Most homes are rarely actually assessed. It's usually done by having assessors visit a few homes, capturing the data regarding kown sales, and applying some ratio to the entire community. If you go look closely, you'll see that two townhomes in a community will be assessed almost identically. This seems to make sense, on the surface. But then you realize that one of these townhomes has a brand new kitchen with granite countertops & stainless steel appliances, while the other has the original builders grade appliances & laminate countertops that were put in when they were built in 1998. One will clearly sell for a greater price, despite the similar assessments.
I'm looking at homes in New Jersey and in the MLS listing the combined (land and building) assessed value is listed. How is it that many of these properties (mostly in the $225-$245K range) typically are priced $40-$60K ABOVE their assessed value? I get that the housing is in a high demand area, but that seems like an awful wide margin. How much bargaining power does the assessed value give me in a transaction? I would think that since the properties are valued so high in the first place that realtors and sellers don't pay much mind to them, but take for example the following house:
High Bridge, NJ - Listed at $224,900 and assessed at $184,600 which is a difference of $40,300. So would I be out of line to offer $200,000 hoping to get a counter offer of about $210,000?
For the most part, generically speaking -- in direct answer to your above question -- none, in my opinion.
If you want a base or guideline, look at comps -- what's for sale, what's been sold, etc. Assessed value is something completely different.
Just as an FYI -- my home in FL is assessed at 50% of what I've already turned down, several times as a matter of fact. Good luck.
Forget assessed value. It's worthless. Look at what other similar homes have sold for recently. Hire an agent, they'll help you out. We are good at interpreting the necessary information. We are here to help.
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How much bargaining power does the assessed value give me in a transaction?
Absolutely none.
A county assessment is not the same as a bonafide appraisal, nor sold comps in the immediate area.
If you've ever owned a home before, you should know that most counties assess property values alot lower than the home is worth....do not rely heavily on county tax assessors values in determining an offer price.
assessed value is used to determine your taxes. It's EXTREMELY important that your assessed value be the lowest it possibly can be (hence lower taxes). Assessors never (well maybe not NEVER) see the inside of a person's home. They base the assessed value on the outside (if that's all they have access to).
Forget assessed value. It's worthless. Look at what other similar homes have sold for recently.
As a recent home buyer I agree with this statement 100%. Here in Raleigh NC, the tax assesed value has zero bearing on what the market value is of the house. The comps are what you want to base your offer on.
I wouldn't base your offer by the assessed value since it's just for tax purposes, but if the house is only worth $210k to you or that's all you are willing to spend on it then base your initial offer off of that.
I'm looking at homes in New Jersey and in the MLS listing the combined (land and building) assessed value is listed. How is it that many of these properties (mostly in the $225-$245K range) typically are priced $40-$60K ABOVE their assessed value? I get that the housing is in a high demand area, but that seems like an awful wide margin. How much bargaining power does the assessed value give me in a transaction? I would think that since the properties are valued so high in the first place that realtors and sellers don't pay much mind to them, but take for example the following house:
High Bridge, NJ - Listed at $224,900 and assessed at $184,600 which is a difference of $40,300. So would I be out of line to offer $200,000 hoping to get a counter offer of about $210,000?
As many have pointed out - the assesment is by the town (remember we are talking about NJ here) for tax purposes. Many of the assessments are frankly bizarre. For instance Franklin assessments are twice those in South Brunswick, a more expensive town, but the tax rate in Franklin is half that of SB - so it kind of evens out. In other words, comps are far more relevant.
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