Tax value vs Sales price (Durham: how much, houses, neighborhoods)

[98stage2]

Very generally speaking homes typically sell at some percentage of their tax value, what is that percentage these days?

I realize there are a ton of variables, but I'm only asking about generalities... average home in average condition in an average location. Just curious.

[NewUser]

The last time Wake County computed tax values was 2008. I think you'll find that sale prices are lower. How much lower depends on a lot of variables.

[North_Raleigh_Guy]

There are so many variables that any answer would just be a guess and not very useful.

[MikeJaquish]

While there may be a statistical answer derived from calculating all the sales vs. tax numbers, the result would be meaningless, so there would be little point to the calculation exercise.
Many people, myself included, appealed their assessment in 2008, and successfully had their tax value reduced.
Most people didn't bother to try.
So my home is about 7% lower tax value than other very similar homes.
That should RAISE the market value and sales appeal of my property, since a buyer would pay lower property taxes than the others would.
In the current market, if I was trying to sell, I would probably promote the lower property taxes as a desirable feature.

[andyselec]

In theory the tax value is the fair market value of your property for the year the assesment was done but the last assesment was performed at the peak of the market.

[peperoberto]

In Durham, it varies greatly by neighborhood. Houses on my street are selling for about 3 to 4 times their tax value, and have been since the last valuation.

In other neighborhoods, the tax valuation is 80 to 90% of the fair market price.

I imagine my neighborhood's tax assessment will go up drastically in 3 years.

[suedonym]

So.... (forgive my idiocy LOL) in an ideal situation, would you want the tax value to be higher, lower or equal to the sales price?

[MikeJaquish]

Originally Posted by suedonym

So.... (forgive my idiocy LOL) in an ideal situation, would you want the tax value to be higher, lower or equal to the sales price?

Lower, although with inflated valuations in 2008, that "lower" is getting harder to find. And a lot of people didn't appeal their 2008 valuations for various reasons.
If the house is worth $400,000 at sale, and the tax value is $350,000, the owner is paying taxes on a lower valuation.
Over 8 years, it can add up to a couple thousand dollars in tax money.

[suedonym]

Originally Posted by MikeJaquish

Lower, although with inflated valuations in 2008, that "lower" is getting harder to find. And a lot of people didn't appeal their 2008 valuations for various reasons.
If the house is worth $400,000 at sale, and the tax value is $350,000, the owner is paying taxes on a lower valuation.
Over 8 years, it can add up to a couple thousand dollars in tax money.

ahh ok thanks mike!

[Studat4]

Okay then, if we bought when the market was bad for sellers but good for buyers and we got a lower price, then should we try to appeal for a lower tax rate as well, since our sales price was 37K below the tax value of the home? That was 18 months ago. Thanks for any input.