Home Buying in New Haven>Question Details

Roshan, Home Buyer in New Haven, CT

A friend told me that a home priced over 25% of the assessed value of the home is overpriced. Would you agree?

Asked by Roshan, New Haven, CT Thu Mar 8, 2012

It seems all homes in New Haven that my wife and I have been looking at online are at least 25% if not way more over the assessed value (well at least the value reported on zillow).

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Answers

8
There is no relation between assessed value and market value. Assessed value is a value placed on your home by the town to figure out what your real estate taxes will be. Your real estate agent can provide you with recent comparable property sales to help you determine an accurate market value.

Betsy Purtell, Realtor
Coldwell Banker Residential Brokerage
Cheshire, CT 06410
(203) 640-4440
http://www.CTTopAgent.com
1 vote Thank Flag Link Tue Mar 27, 2012
Assesment is only 70 percent of the Market Value, but there are many varibles, location, condition,square footage. Many home are assesed slightly lower because the higher the assestment the higher your taxes.
You multiply assesment times mill rate and you get the tax amount.

Hope this helps. Price is only one factor. Olivia
Web Reference: http://www.hpearce.com
1 vote Thank Flag Link Thu Mar 8, 2012
Roshan,

Assessed value may be very different than market value... and market value is what matters in terms of how much the property is worth. When you identify a home you want, ask your realtor to provide "comps" to support a market value for the property. Then determine how you want to structure an offer on the property.

Good luck.

Tom Lynch
Associate Broker, Massachusett, New York and Connecticut
Berkshire Property Agents
12 Railroad Street
Great Barrington, Massachusetts 01230
1 vote Thank Flag Link Thu Mar 8, 2012
Roshan,

Your friend is a little off... if it is more than 30% <b>OVER</b> the assement then it likely is over priced. Every town/city has a different ratio of current market value to assessed value. For New Haven it could still be priced at market if it was 40% over assessed value.

Just to be clear I am talking about the actual city assessment value that is used for tax purposes, not a Zestimate value! The town assessed values represent 70% of the market value in as of October 1st in the current Tax year... Tax Year is a least 1 year behind and sometimes two years. Right now, and until July 1st, 2012 we are currently in the 2010 tax year and after July 1st we will be in the 2011 Tax Year.

New Haven already has values for the 2011 tax year and those may be reporting on Zillow. The citiy's assessed values took a huge dip from 2010 to 2011 but that is partially becasue the tax rate is high at 43.9 Mills, this often happens in CT in cities where the tax rates are very high. The assessments tend to be a little lower than assessed values in other towns for a similar property.

The bottom line is that assessments, and Zestimates, are not directly related to market value and do not provide a reliable or consistent indicator of vale. However, if you find that the home you are interested in purchasing is offered at a price significantly less than the town assessed value you have probably got a good deal on your hands.

If you really want to know whether you are making a good buy hire a Realtor to work with you as your buyer agent. Someone like myself with years of experience in the New Haven market can help you decide what the market value of any property is, and our commisions are typically paid for by the seller so that you don't have to pay for representation to buy a home. For more info or to contact me go to my trulia profile. For more info on New Haven tax assessments check out the website below.
1 vote Thank Flag Link Thu Mar 8, 2012
Assessed value is 70% of the appraised value. The problem is that the appraisal that the assessment is based on is not current. It could be 5 years old, so depending on what the market has done since it was appriased, there will be a variance.
NEVER use Zillow's value. It doesn not factor in condition or location, and can be off by 25%, high or low.

When using the assessed value to determine market value, the only fair comparisson is to look at the closing prices of homes with similar assessed values, usually a range of +- $2,000.

I hope this helps
Dan ross
C21 AllPoints Realty
Web Reference: http://www.danrossre.com
1 vote Thank Flag Link Thu Mar 8, 2012
The assessed value is usually 80% of the appraised value. Depending on the area, condition and age of the home should all also take a play in the pricing of a home. I would be more than happy to assist you further on your home search and do a free comparative market analysis of the homes you are interested in. Julie Lucia, Realtor, Showcase Realty, 203-578-5631 julie@julierealestate.com
1 vote Thank Flag Link Thu Mar 8, 2012
Hello Roshan,

I agree with Betsy. Zillow is often wrong, but it is good for overall trends in values.
Assessors are often behind the market place, and that's a good thing - since the homeowners pay less in taxes.

Irina Karan
CDPE - Certified Distressed Property Expert
IrinaKaran@gmail.com
Beachfront Realty, Inc.
0 votes Thank Flag Link Wed Apr 18, 2012
Assessed value /70%= the real assess value, which 25% is not way more over priced.
0 votes Thank Flag Link Fri Mar 9, 2012
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