OK, here's the thing, the tax assessed value is only 1 aspect of determining real market value of a property. These days, they are very unreliable. One answer here suggests that the tax assessed value is usually more. Well, not too long ago, it was always less!! And, the percentage above or below varies, too.
I explain to buyers and sellers that the county/city/municipality still needs to pay their bills regardless of where property values are. So, the assessed value at which the property is being taxed is set at that amount so the county/city/municipality can meet their expenses. Now, this doesn't mean that property values in the same area should be all over the map, but it can vary a bit. I always encourage home owners and buyers to do a little research on their own with the city/county/municipal taxing authority to find out what the tax capacity rate is and what formula they are using to determine tax rates.
Once you do establish a range for a market price, show the client that the tax values on other sold properties - and the relationship to selling price. You should be able to demonstrate to the client that taxable value has little worth in determining selling price and dismiss the term from future discussions.
The home is a commodity just like a loaf of bread. It is only worth what someone is willing to pay for it.
Make it that simple because that's what it is.
Taxes are never considered in appraising the value of property.
Of course these days you can see just the opposite of what I described due to the lag time of assessments.
If the county is assessing taxes on properties that have not been re-evaluated within the past three years, then there is a good chance the home owner is overpaying property taxes. Values have declined, and any home owner can dispute their property tax value with the county and potentially get a reduction rather quickly. The agent can assist by submitting a good home market analysis to accompany the dispute. Sold properties will determine a good value related to the subject property. I hope this helps?