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I just purchased a new construction home a few months ago in Union County. The county kept sending me a form to fill out regarding the sales price and if I felt this was a true market value for the home. I filled everything out, sent it back, and got a notice in the mail saying the assessed value of my home changed. However the value is about 67% of what we paid for it. I don't understand how this will affect my property taxes (i.e. whether this was good news or bad news). What am I paying property taxes on - market value or assessed value? I think the money that was paid at closing for taxes was based on the purchase price.
Not sure. But, the less your assessed value....The less your taxes will be.
Assume your taxes are $1 per $100 of assessed value.
You paid $250k for your house. And your house was assessed for $200k. Then your taxes will be $2,000 at the 200k assessed value. If it was the full value it would be $2,500.
hi, i will try to take a stab at this:
market value is different from purchase value (price) and it is also different from assessed price.
purchase value = purchase price of your house (minus closing costs, points paid etc)
market value = the price you can potentially get when you sell your home. this is the most volatile since in a buyers market you can make only a little more than you paid or may even get a sale price less than your original price where as in a sellers market, you dictate the terms as a seller
assessed value = value which the govt thinks is the worth of your home. it is pretty much has a standard level of appreciation (they have different ways of valuing your home) so the property tax is based on this value.
this is usually the lowest value when compared to the original sale price and "market value" of your home.
I just purchased a new construction home a few months ago in Union County. The county kept sending me a form to fill out regarding the sales price and if I felt this was a true market value for the home. I filled everything out, sent it back, and got a notice in the mail saying the assessed value of my home changed. However the value is about 67% of what we paid for it. I don't understand how this will affect my property taxes (i.e. whether this was good news or bad news). What am I paying property taxes on - market value or assessed value? I think the money that was paid at closing for taxes was based on the purchase price.
Assessed value. Shhhhhhhhhhhhhhhhhhh - Don't complain! H*ll, I WISH I could get the assessed value of my house. Realtors / sellers often say
"This property is a steal at ___ below assessed value"
Assested value is what countys use to determine the tax on your property. It really has no bearing on market value or what a willing, ready and able buyer will buy your home for. For example homes here in Lebanon county PA. can be assested at a low figure of 10,000 but sell for well over 200, thous dollars. In the neighboring county of Dauphin PA. the assested values tend to be closer to what a buyer will pay but still not real vaules. What happens in Lebanon County the mil rate per assesed value is higher than in Dauphin county, as an example in Palmyra PA the tax is 105% of assesed value. next door in dauphin county the assesed value will be much lower. Hopefully this makes sense.
Assested value is what countys use to determine the tax on your property. It really has no bearing on market value or what a willing, ready and able buyer will buy your home for. For example homes here in Lebanon county PA. can be assested at a low figure of 10,000 but sell for well over 200, thous dollars. In the neighboring county of Dauphin PA. the assested values tend to be closer to what a buyer will pay but still not real vaules. What happens in Lebanon County the mil rate per assesed value is higher than in Dauphin county, as an example in Palmyra PA the tax is 105% of assesed value. next door in dauphin county the assesed value will be much lower. Hopefully this makes sense.
Assested value is what countys use to determine the tax on your property. It really has no bearing on market value or what a willing, ready and able buyer will buy your home for. For example homes here in Lebanon county PA. can be assested at a low figure of 10,000 but sell for well over 200, thous dollars. In the neighboring county of Dauphin PA. the assested values tend to be closer to what a buyer will pay but still not real vaules. What happens in Lebanon County the mil rate per assesed value is higher than in Dauphin county, as an example in Palmyra PA the tax is 105% of assesed value. next door in dauphin county the assesed value will be much lower. Hopefully this makes sense.
Not exactly..........................in our area realtors would use a percentage rate as one of the indicators to help us make an offer for a home.
Not exactly..........................in our area realtors would use a percentage rate as one of the indicators to help us make an offer for a home.
Has no one ever seen this???
Yes, we have seen this, especially those of us who have either been realtors forever or in my case, had a broker's license over 20 years ago.
However, in this region, comps are used to determine selling price, not assessment or tax valuation. In addition, there may be consideration for sq. footage price . . . but again . . . that would only be when looking at comp properties, and adjusting for such things as not only interior/exterior upgrades, but also community amenities. Altho a buyer or a realtor may look at those tax records (wh/ are easily available in Meck online) . . . this is used to determine more about making an offer than it is about the "value" of a house.
If the property is, indeed, "unique" . . . wh/ rarely would happen in any market . . . then one must use all sorts of combinations of factors and data to come up w/ the "value" of a house. However, such factors as market stability, inventory levels, lending practices and desirability of location are going to be important determinants/variables for predicting what price point a home is finally "valued."
By using the comparable properties method, the market itself will determine value - in the sense of aggregate statistics on like properties. In the end, value will be established when considering that aggregate data . . . as value is not only perceived - it is acted up when an property transaction has occurred. Therefore, value is determined by what a qualified buyer was willing to pay for a property at any given point in time - wh/ also means - market conditions alone can change that value at a future point in time.
Of course, this is just my definition. Others may have their own.
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