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I have a question for the experts here. The tax value of our house is higher than the market value (by $18k). I have read that in "most" cases the market value is higher than the tax value. We have had some major improvements to the house in the last 2 years, and I do understand the neighborhood comps have a lot to do with the "value" of our home. Most if not all the neighborhood comps are around $20k-$50k higher. We are at the higher end of that spectrum of the comps considering square footage, amenities and curb appeal. Considering this (as a starting point), if I wanted to put my house on the market today, would I still use the market value or could I start at around the tax value (or higher)? Thanks in advance.
USAA. It has been pretty accurate compared to our last 2 houses and what our realtor at the time quoted. And USAA's tax value is the exact same amount as our county statement for 2020..
If they haven't been in your house, then it's just a speculative computer algorithm.
You want us to tell you which of two highly speculative values are the most accurate, when we have even less information than they had? How is that going to get you a better answer?
Do you actually want to sell your house?
If so... I think the best way to the best number is to call in a good listing agent or three, invite them to come IN to your house and look, and choose the best one from that. Not the highest number, necessarily, but the one who sounds like they used the best rationale to get there.
If you don't want to sell your house, then what the heck.... pick the highest one.
It's ALL speculative until there's an actual buyer with an actual offer. And even then... you will never know if another buyer may show up tomorrow and offer more... or less. At some point you just have to decide what it's worth to YOU.
And at this point everyone knows that tax assessments are not the same thing as market value or selling price that can reasonably be expected - unless the house has sold in the last few months - and not necessarily even then, depending on the behavior of your particular appraisal district.
I have a question for the experts here. The tax value of our house is higher than the market value (by $18k). I have read that in "most" cases the market value is higher than the tax value. We have had some major improvements to the house in the last 2 years, and I do understand the neighborhood comps have a lot to do with the "value" of our home. Most if not all the neighborhood comps are around $20k-$50k higher. We are at the higher end of that spectrum of the comps considering square footage, amenities and curb appeal. Considering this (as a starting point), if I wanted to put my house on the market today, would I still use the market value or could I start at around the tax value (or higher)? Thanks in advance.
Meet with a realtor or pull closed sales as comps. NEVER, EVER rely on a tax value. And in the same vein, never use a Zillow or a Realtor.com value because those are all generated by a computer algorithm and can be wildly wrong. FYI, taxing entities also use a computer generated value.
I have read that in "most" cases the market value is higher than the tax value.
It depends entirely on the local area. In some communities in my area the tax assessed values are generally pretty close to the market value. Other communities are known to over-assess properties in order to bring in more tax revenue. Sometimes the state steps in to correct their practices; oftentimes they get away with it.
Quote:
Originally Posted by Grlzrl
FYI, taxing entities also use a computer generated value.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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That's a typical situation for appealing the property tax, and people have had their tax reduced in a bad market. I remember in California where we lived about 1990 when home values dropped many people appealed and got their taxes reduce. The market value is what an appraisal calculates, without paying for one, you can get an idea from a realtor inspecting it, or take the average values from several sites like Zillow and Redfin, then subtract for any deficiencies, like needing new floors or having popcorn ceilings.
In your case, when you do permitted improvements, the value of the work is added to the assessed value. One can go crazy and put in a lot of expensive/custom upgrades like towel warmers, jacuzzi tubs, a pool, and an elevator that increase the assessed value dramatically but may not translate to as much of a market value, especially if not in a really high-demand area.
Are you in Texas? I think our appraisal district pulls assessments out of their rear. Protest it. Go in prepared with sold comps and the appraisal from USAA (assuming they did a formal one). I have heard from more than one reliable source that many areas here intentionally over value homes with the hope that people don't have the knowledge, time, or resources to protest it or just don't bother.
I protest every year and have gotten it lowered every year.
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