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05-17-2010, 10:50 AM
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2 posts, read 5,370 times
Reputation: 10
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Hi,
I have a question, may be some of you know the answer. I like one house, but it's asking price is 70K over Estimated Market Value which is listed on tax documents. My broker told me that estimated market value for taxes always MUCH smaller then real house value. Does it sounds a bit fishy?
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05-17-2010, 10:53 AM
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Location: Niceville, FL
12,330 posts, read 20,725,747 times
Reputation: 15196
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It depends on the state and local government and how they calculate those different numbers. Where I live, the 'Fair Market Value' on the tax rolls has roughly zero to do with actual market value. In other areas, the numbers might be closer.
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05-17-2010, 10:56 AM
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2 posts, read 5,370 times
Reputation: 10
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this is for staten island, ny
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05-17-2010, 11:02 AM
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7,950 posts, read 8,265,633 times
Reputation: 4950
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Same in my area also. My take is the State is not in the selling-profit business and shouldn't be otherwise the state could warp the market.
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05-17-2010, 11:12 AM
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178 posts, read 523,317 times
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Depends on the area. One house I sold, the town's assessment was higher than realistic market value.
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05-17-2010, 11:17 AM
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Location: Tempe, Arizona
4,511 posts, read 13,093,417 times
Reputation: 2200
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Tax value may vary dramatically either higher or lower than true selling market value. Depends on the assessor's valuation system and how often they check value. Always best to check recent comparable sold properties. Perhaps your agent may know that typically, tax valuations are lower in your area than true market value.
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05-17-2010, 11:52 AM
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Location: NJ
17,578 posts, read 44,505,887 times
Reputation: 16249
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In both houses I have owned the tax assessed value had almost zero to do with the actual market value.
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05-17-2010, 12:38 PM
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9,732 posts, read 9,282,915 times
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If a home is old and does not change hands very often, the value for tax purposes can be ridiculousy low. It might only get updated when it is sold.
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05-17-2010, 12:44 PM
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Location: NJ
17,578 posts, read 44,505,887 times
Reputation: 16249
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Quote:
Originally Posted by kevinm
If a home is old and does not change hands very often, the value for tax purposes can be ridiculousy low. It might only get updated when it is sold.
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Or they could double it one year. Or cut it in half. And then adjust the tax rate. |
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05-17-2010, 01:52 PM
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Location: Charleston, SC
159 posts, read 302,547 times
Reputation: 69
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True home value is the price agreed to upon the buyer and seller. The best way to "estimate" is have an independent appraisal done that takes into consideration sales within the past 3 months, pending sales and active sales. You also have to be careful that the recent tax credit has artificially increased demand and perhaps home prices.
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