Relation between "Assessed Value for property tax" and Market Value (for sale, foreclosures)

[Matt2010]

Is there a relation between "Assessed Value for property tax" and the actual market Value of a property (House) in the market for sale. In other words, can we use "Assessed Value" of a property to determine whether the listing price is reasonable?

Also, if there is a relation between these two, how does the housing market condition impact that?

[txgolfer130]

There is no relation, other than to in this economy see how much the "value" has fallen or kept steady.

In most circumstances, the market value should ALWAYS (and will 99% of the time) be higher than the "appraised" value.

You can sometimes with a foreclosure or short sale use the selling price and assessed value as a data point in consideration. Home assessed @ $350,000 (and has held a steady point or slow decline) priced at $250,000 or less. That is more than likely a good option to purchase. I would also check out the neighbors values as well.

[Matt2010]

Originally Posted by txgolfer130

There is no relation, other than to in this economy see how much the "value" has fallen or kept steady.

I would also check out the neighbors values as well.

Thank you, wanted to see if there is a easy way to calculate the actual market value.

[loves2read]

get a realtor to get comps for similar properties in the same neighborhood over the past 6 mo to year
check if there are any short sales, foreclosures, or builders' spec homes in those which might unfairly influence their market price/sales

evaluate the particular home for intangible factors--like location within the neighborhood, neighboring homes' conditions, appeal to you personally and your want-factors...

we paid more than market price for our current home because it had a large, flat lot without any homes overlooking the backyard, it had an easy-to-navigate driveway/garage, it has easy access to 183/Airport Frwy for my husband's commut, and the floorplan basically had factors we wanted although it does not have 2 living areas downstairs -- which WAS on our want-list...

the only way to get an accurate assessment of SALES prices is through a realtor--that is not public info in TX as it is in other states and buyers are not forced to turn it over to the county appraisal district as they are in other states...like FL

[Rakin]

Good advice from Loves2 above. Also, if you want to pay you can get an appraiser to do a full blown appraisal. In a rapidly changing market that 6 month period will be reduced to 3 months to find good comps if possible.

The last place you want to look at values is the tax records. I fight mine every year to keep as low as possible and very few people call the tax office to report their values are too low. In todays world, you'll also run across tax values that are too high. The tax man likes to reappraise homes very often when values are going up but (IMO) are much slower when values are going down.

There are other factors in determining value, not only looking at what sold but what did not sell, how long they all were on the market and a huge factor is the time of year they were on the market.

[skids929]

where I live, you can't argue a thing, it's stinks..Even if your assessed value falls here, which it did by 3% this year, they just raise the rate that applies to the value.

For the most part where I live I worry less about how much I pay in taxes and more about how they spend the tax money when they get it. If it were me it would all go into schools, which directly relates to your overall property value here.

[Rakin]

Originally Posted by skids929

where I live, you can't argue a thing, it's stinks..Even if your assessed value falls here, which it did by 3% this year, they just raise the rate that applies to the value.

Now that property values are declining all the cities, schools districts, etc are talking about raising their tax rates. When they do raise the tax rates, I'd bet a whole lot of money they don't discuss lowering the rate when the property values start going back up.

Then we have higher tax rates with higher home values.

[Matt2010]

Originally Posted by loves2read

get a realtor to get comps for similar properties
....................... the only way to get an accurate assessment of SALES prices is through a realtor

agreed...

Originally Posted by Rakin

In a rapidly changing market that 6 month period will be reduced to 3 months to find good comps if possible.

The last place you want to look at values is the tax records ................ There are other factors in determining value, not only looking at what sold but what did not sell, how long they all were on the market and a huge factor is the time of year they were on the market.

agreed...

Only reason I thought of using accessed value to browse through is to come up with a short list to work with a realtor, but it looks like there are many other factors influence the market value. Hence I am planning to stick with short listing based on my needs and use that has a base list to work with a realtor. Thanks to everyone for the feedback.

[Rakin]

Matt, after you look through all the listings and look at 30-50 homes with your agent, you will know houses as well as many. After 15-20 homes you should be able to take 3 steps in a house and say "This house is overpriced" or "Wow, what a great deal"

If you are buying a home, find an agent who will teach you how to look at the house, how to rate a home and never ever pushes you to make a bad decision. The agent should be there with you at the inspection and help interpret what repairs are important.

Find an agent who is a teacher, not a salesman. A house should sell itself, you just need to know what to look for in a home.

[Willsson]

While I'm not in the DFW but am only about a hundred miles south, I'll share my home value experience. Last year I purchased an older home, 1950's model. I offered less than list, 2008 appraisal was about list and got an independent appraisal more than list.

Shortly after closing the 2009 appraisals came out and my taxes went down. The 2010 appraisal has reduced a bit more, so I'm feeling okay with taxes. While a county appraisal might tell you the comparative value the county holds between you and your neighbor, it should have no bearing on any variances in offers you might get from potential buyers.

I would expect a new independent appraisal to damage my pride, but considering the economy, I'll probably be here a while.