Assessed Home Values versus Home Sale Price

Ginny Gorman - that's insane having to put the assessed value on all listings - I bet that creates a lot of confusion and a lot of phone calls.

That being said, great information for buyers, and helps to show why you're the go to agent the North Kingston, RI area!

In my market there is virtually no correlation between assessed value for taxes and market value. We assess homes on a statistical basis for a geographic area and not house by house. Then there are houses that have a lower assessment due to homesteading, so it can look artificially low. Plus, we only reassess every four years or so... market does not stand still for four years.

This is good information. Often, the town's assessed value and market value are on different planets.

Congratulations on the featured post. I will share this with my clients.

One does need to do their homework when purchasing real estate.

When it comes to successful Real Estate transacting professional help is wise

Good post Ginny. Good explanation. There is actually a relationship, but not what consumers think it is. I have to explain it from time to time.

Sure the assessor knows the property values--NOT! Most use some computer logorithm, as how could they take the time that is needed to properly determine assessed value of each parcel?

We all know the various factors that affect value, so there is no logorithm or science that can come close to doing an accurate job of assessing value.

Btw-- this is what is going on in my market area. Reassessments are done every 3 years. This is one of those years. The assessor has increased some assessed values 50%. (which means the tax amount will likely increase that percentage) Of course property values haven't increased 50% in 3 years. It's truly out of hand!

Thanks for clarfying!!! I agree with you 100%

Just understand you need to know the market trends in your town and many are on a significant upswing from many months ago.  And know that assessed values may have nothing to do with current market values.

I have similar explanations with Zillow Zestimates. Everyone is an expert now it seems and use the word "comps" like they know how to accurately price a home. It's funny and frustrating some times.

I often hear people refer to the assessment as an appraisal. Obviously very different things.  Great educational post. 

Here in California, the assessed value is the last purchase price in most instances and has nothing to do with market value. Whereas in Hawaii, properties get reassessed every year.

Great post, Ginny. Interesting that you have to put the assessed value on your listings. I can imagine what confusion that causes. And yes, it is so frustrating when buyers think they need to go through the listing agent to get a "deal". It almost never ends up that way.

SO much to process when learning about real estate and to understand all the different numbers involved. I know agents that don't know the differences and it is definitely not something that is the same everywhere you travel. Great post Ginny!

Your process is very different, but I guess that goes with every state!  We don't list assessed values, but there is a direct link to the tax records and that is public information.  Our tax system is so complicated that even the assessor couldn't explain it to us in our office meeting!  Great job in explaining why a buyer should procure their own agent!

In California assessed value has nothing at all to do with the home value, rather, it has to do with how long a person has owned a property. Even the appraised value isn't necessarily the sales value in our multiple-offer environment.

In April when the tax assessments come out, my phone blows up.  People don't believe that their houses are worth the assessed value and I show them that they are probably worth probably 20%  more.  Then, later in the year, I get a call from one of them to list their house and they want to list at 40% more than tax value.

Whenever a client asks me about the assessed value, I have to explain to them that that number represents 70% of the town's appraised value for the home and is used for tax purposes, only

One thing I tell property owners in my area is that the assessed value can be 10% low to 20% high. They are mostly high in my area.