Assessed Home Values versus Home Sale Price

By
Real Estate Agent with RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate
http://actvra.in/4T82

Assessed Home Values versus Home Sale Price

When buying or considering homes for sale anywhere, many buyers believe there is a direct correlation between the town's assessed value on line and the home sale price.  When real estate agents list a property in my state they are required to put the current assessed home value on the multiple listing.  However, many times the assessed value is incorrect by tens of thousands of dollars and many times the re-assessment in the town has been done and changed.  Yet the agent never updates their listing they are marketing for the seller to reflect the current town assessment.  A buyer should always look online at the town's appraisal records to ensure things are listed correctly.

 

However the assessed home value does not mean a buyer can buy it for that amount of money.  The number of calls I receive from buyers about why a house is so 'overpriced' compared to their town assessment value is overwhelming.  There is no correlation many times and other times the town assessment may be what the market says the property is worth.  The town assessor does not get into the house to see the condition & updates of the home.  

 

You do need to work with a real estate agent that knows the market and one that represents you and not the seller.  Why home buyers still think they get a better 'deal' by going to the listing agent boggles my mind.  The listing agent works for the seller not you the buyer!  Do you hear me?  

 

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.  That is the way it is here in Rhode Island.  

 

Assessed Home Values versus Home Sale Price

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This blog © and its contents is original to Ginny Lacey Gorman

the RI waterfront Realtor of Choice

 

Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate   

Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ...  I sell dreams!  Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.

 

Looking for a knowledgeable Rhode Island Real Estate Agent?  Let me GOOGLE one for you!

            

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Rainmaker
684,789
Jennifer Mackay
Keller Williams Success Realty - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

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!

Jul 08, 2016 08:57 PM #16
Rainmaker
2,075,189
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

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.

Jul 08, 2016 08:59 PM #17
Rainmaker
1,055,528
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

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

Jul 08, 2016 09:50 PM #18
Rainmaker
3,680,841
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

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

Jul 08, 2016 10:12 PM #19
Ambassador
1,609,634
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

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

Jul 08, 2016 11:02 PM #20
Rainmaker
2,182,968
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

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

Jul 08, 2016 11:24 PM #21
Rainmaker
535,236
Richard Bazinet /MBA, CRS, ABR
AZuRE Team - Realty ONE Group - Scottsdale, AZ
Phoenix Scottsdale Real Estate

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.

Jul 09, 2016 12:12 AM #22
Rainmaker
291,850
Jim Holder
HomeSmart Connect - Arlington Heights, IL
REALTOR EMERITUS, ABR,ePRO,CNC,SFR,

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!

Jul 09, 2016 12:34 AM #23
Rainer
375,893
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

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.

Jul 09, 2016 01:11 AM #24
Rainer
22,278
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

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.

Jul 09, 2016 03:16 AM #25
Rainmaker
433,355
Dan Tabit
Northstone Real Estate Inc. - Sammamish, WA

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

Jul 09, 2016 04:30 AM #26
Rainmaker
443,697
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

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.

Jul 09, 2016 05:12 AM #27
Rainmaker
1,108,340
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

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.

Jul 09, 2016 05:29 AM #28
Rainmaker
848,994
Janis Borgueta
Key Properties of the Hudson Valley - Newburgh, NY
LIC RE Salesperson - Hudson Valley Homes for Sale

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!

Jul 09, 2016 06:11 AM #29
Rainmaker
836,809
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

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!

Jul 09, 2016 09:14 AM #30
Rainmaker
1,533,108
Lottie Kendall
Today | Sotheby's International Realty - San Carlos, CA
Serving San Mateo County and San Francisco

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.

Jul 09, 2016 12:59 PM #31
Rainmaker
253,929
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

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.

Jul 10, 2016 12:32 AM #32
Rainmaker
1,672,726
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

If anything the consumer and especially home buyers & sellers can learn that the difference may be real ...or not...talk to a knowledgeable local real estate agent to know!  thanks all

Jul 10, 2016 08:12 PM #33
Ambassador
2,470,929
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

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

Jul 12, 2016 01:12 PM #34
Ambassador
3,328,466
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

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.

Jul 13, 2016 12:04 AM #35
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