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I think the fact that you didn't have a written contract and relied on a verbal counter offers is what screwed you.
Had you had everything on paper and signed it wouldn't be so easy for him to just pull his latest counter.
In my state, the taxes are reaccessed based on a new sales price each time a home is sold. Please be careful of the above advice. While potentially correct, I could see a danger of misinformation if used as a marketing tool.
What did you mean "if used as a marketing tool"? I said I was a layperson...
In miami taxes are based on last sale price, and why do they assess regardless? Because the state constitution says so.
That is a horrible tax system. What do they do if a someone sells their house to say-a family member for $1?? They live there tax free for the rest of their lives? Or if one guy way under pays for a house he gets lower taxes and vice versa??
I have my house on the market for 300k. The county values it at 278k, and most of the houses in my area are selling for a bit below or a bit above the county value. The comps bear out my asking price, however, and I got an offer (20k below asking) after 2 weeks of being on the MLS.
Well, today I found out that my county just adjusted the assessment value on my house to 178k. No other house in my neighborhood dropped this much in the new assessments. The only think I can think of is that the new assessment must be taking into account the fact that the short sale next door sold for 150k in January (it was the same house, age, condition, etc.).
Today my buyer informed me that he is rescinding his last verbal counteroffer of 282k and wants to offer 200k to reflect the new county assessment.
I thought that short sales were not comps? And what do I do about this?
County tax value should have little to nothing to do with market value. It definitely does not affect appraised value (i.e. an appraiser does not take into account what the county has the property valued at).
I just had an appraiser do an appraisal on a house I am thinking about buying in the Clearwater FL area. The appraisal came in within 5k of what the county assessment is. But the appraisal also came in way below what I offered verbally (60k less), so I am walking. In addition the appraiser told me that because there are so many short sales & foreclosures in central fla, they are counting as comps (and so are the county tax assessors). He also said that prices (in his opinion) are gonna start to drop now really fast and through the end of the year. He also said, after he gave me the appraisal, that many banks are going by the county assessed value and then adding here and there for any renovations or special features. I know that Realtors like to say that county values don't mean anything; sometimes in fact they are way off. But other times they are right on the money. Sounds like the OP's property is worth pretty close to what the county assessed it at, and that is why the buyer vanished. In Virginia I know that sales price is always at or below county assessment. It probably varies by locality.
Sounds like the OP's property is worth pretty close to what the county assessed it at, and that is why the buyer vanished.
You have absolutely no proof of that just like I have no proof the potential buyer was correct.
As for the explanation, it's what you said. A buyer is basing their offer price on assessed price. That's a terrible way comp a property because as you said, it may or may not be accurate. The agent is letting the buyer make uninformed decisions no matter how you slice it. If the property is worth 200k the agent shouldn't have let the buyer make the higher offer to start with. If the property is worth 300k the agent should have informed the buyer that assessed value has no bearing on actual market value.
What is a "non-terrible" way to comp a property in this market, where home prices are still falling? Last month a house may have been worth 200k, while this month it may be worth 175k. I think the CMA's you guys do also "may or may not be" accurate. It's an unprecedented and very difficult time to price a property. And an agent can only tell a buyer so much before the buyer does what he wants. My agent let me offer 60k more on that property in Clearwater, even though it wasn't worth that. And even though he advised against it, I still did it because there is nothing else on the market that matches the property in lot size and location.
You have absolutely no proof of that just like I have no proof the potential buyer was correct.
As for the explanation, it's what you said. A buyer is basing their offer price on assessed price. That's a terrible way comp a property because as you said, it may or may not be accurate. The agent is letting the buyer make uninformed decisions no matter how you slice it. If the property is worth 200k the agent shouldn't have let the buyer make the higher offer to start with. If the property is worth 300k the agent should have informed the buyer that assessed value has no bearing on actual market value.
I dont even think "it may" be accurate unless its a fluke. They dont even go inside the home! Sure, the lot is a large portion of the overall value. Also granted that the home's (very approximate, since they dont go inside the home) square footage has an affect on the overall value. But how on EARTH can one use a county tax assessment to gauge a property's value when no one enters the home, period?
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