Assessed Value, Appraised Value, True Value....
How do i determine what is the true value of the home. Is it through the appraised value of the home? I have looked up the value of the home through the county assessors website. The house i am interested on purchasing is appraised at 441k but they are selling it at 489k. Why are they pricing it at such difference. Also, the county assessors has just reassesed the value of home recently so i know its current. How much above the appraised price should i end at for offering? I guess it all depends on the supply and demand of the area. should i start offering at the appraised value? But why would i go much more above it? Any thoughts?
Check what is the custom in your area...in Florida the county assessor usually appraises the properties at 75% of the market value. It is a great tool to see what the "comps" in the area are. Good luck.
You have property in CT, so you should know that in CT, if you offer the assessed value, you won't go far. When I bought my own house, the asking price was 70% higher than assessed value. This year, the county did a new assessment. By their formula, assessment is 70% of market value. When I refinanced a month after assessment, the bank appraised it at 130% of the market value, meaning about 85% higher than assessment. Sounds a bit bubbly.
Hello doll,
What are you planning to do with the home? Price and value is what the market will bare.
Seems like stocks and dollar are taking a pounding after net foreign purchases of US securties in September fell to the lowest in 5 years. Gold price is soaring. As budget and trade deficits rise, demand for tangible assets like Gold/RE could rise. But high interest rates could hurt RE some. I would like to buy a few more houses with good cash flow with fixed rate loans, not thinking too much about assessed values.
Yes, I do understand the assessed value vs. the market value in the connecticut area. I am inquiring about the new york nassau county area. From my research in that area, the market is extremely hot right now for the seller. From my analysis of the recent comps in that area everyone is paying 10% above the appraised value, not even the assessed value. My original intent of this question was for me to find out what % above appraised value should I price my offer. At any rate, I had put an offer 5% above the appraised value and 4 % less than the listing price. Unfortunately, someone over bid my price. For me its an investment property, if the number does not workout for me I'm not going to play the bidding game. Thanks for all the feed back.
I just recently purchased my first home in beautiful Valley Stream, almost 4 months ago. The township of Hempstead, (in Nassau county) periodically conducts an assessment of the properties to determine how much tax we should be paying. I think the last one was done in January 2001. My property was assessed a value of 238,000. When I purchased the in July, the bank's appraiser valued the property at $344K. The appraiser used a number of variables to arrive at that figure, one of the which is involves the use of comparable martket analysis.
If the economy of NYC started to tank for horrible reason, I'm sure that the appraised value of my home would be drastically reduced. I suspect though, that the township would very slow to reduce my assessed property value, thereby lowering my tax burden.... You know in the spirit of fair game.
If you want to know the value of your home for the purposes of doing a deal, than your best bet is hire an appraiser. If you want a ball park figure, get the comps online or talk to a realtor.
I don't see why someone would use appraised values for determining there offering prices for a property. There is no blanket formula that will work across the country in determining true value (I think you called it) vs appraised value. In some places homes will sell below appraised value and in some places home can sell above appraised value.
Location, condition, and price sell a property.
Comps are your best starting point. If this house is sitting in a sub division with identical models a realtor can give you perfect comps of compariable models which will get you extremely close. If there aren't identical models you can still get a range and then analize where your property fits into the range. If the low is 75k and the high is 150k you can do some analizing to determine why some houses sold closer to 75k and why some sold closer to 150k.
It will be condition and location and features. You may find that houses with 2 car garages brought more money then 1 car garages. Or that the norm is 3 bathrooms, if you house has 1 bath room that is a serious thing that will effect price. Get the idea?
The bottom line is you can't use another value to determine what houses are going to sell for. The #1 thing to use to determine what your property will sell for is what did similar properties sell for and what did properties close to yours sell for then extrapolate to determine the relationship of features, conditions and location of your property in relation to the comps.[ Edited by The-Rehabinator on Date 11/21/2003 ]
I think we may be confusing the market value and the appraised value. We can easily settle this argument by putting ourselves in the position of the bank.
In arriving at their decision regarding the value of a property, do they use the services of a realtor or an appraiser. As a real estate agent I can honestly say that comp values are arrived at in a very subjective manner.
Also, if we look at this from the point of value of developer that that's undertaking a project (i.e. mall, mixed-used property, or golf course) the value of that property is assessed by an appraiser.
Given today's current market condition of course if makes sense to use the market value
( comps) because the price of everything is inflated, so you will be perfectly justified to use that price. Using the comps today is sort of like paying $100/share of www.priceline.com circa 1998; back then few people were concerned with value of stocks so we all went by what the market dictated.