Home Buying in Ithaca>Question Details

M.E., Home Buyer in 14850

Can anyone tell me what determines difference between assessment valued for tax purposes and then the asking price?

Asked by M.E., 14850 Tue Jan 17, 2012

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Hi there,
Good question, frequently asked by buyers. As it was mentioned in other answers, there is no connection between the two in terms of the approach used to determine them.
But to answer your question as it was asked, it could be the the date of the last sale.
In Tompkins County, Department of Assessment typically matches assessed value to the purchase price of the last sale of the property soon after the sale. Therefore, if property was sold recently, assessed value is somewhat the same, but if property wasn't for sale for long time, assessed value can be substantially lower than current market value of the property, given, of course, property values appreciate. Hope it helps.
Elvina Amati.
0 votes Thank Flag Link Tue Jan 17, 2012
Thanks everybody--very helpful information!
0 votes Thank Flag Link Tue Jan 24, 2012
Assessment is what the tax assessor values the home at based on purchase price, but not entirely on that, it is also based on comparable property values, and recent sold's in that area.
We are doing some very interesting statistics in our office on the assessment in certain neighborhoods in the Tompkins County area and are I am sure you would find these quite interesting. Let me know if you would like a copy ,
Sincerely,
Bonnie Nault , 607-215-6195
Web Reference: http://bonnienaulthomes.com
0 votes Thank Flag Link Tue Jan 17, 2012
Asssessed value has no bearing on market price, it is the value placed on the property by the tax assessor for the purpose of taxation; whereas market value can and should be defined as the price at which both buyers and sellers are willing to enter into a contractual relationship, whereas the market price is the actual sale/purchase price of a property; whereas asking price is the price a seller/owner lists his/her property. For a more detailed explanation, consult with your agent, and or, attorney.
0 votes Thank Flag Link Tue Jan 17, 2012
The assessed value is what you will be taxed on. It is usually different from the price your home is listed at. When the market was hot (seller's market) it was not uncommon to see the list price way above the assessed value. Now that we are in a buyer's market the opposite is true, you will now see many properties listed below the assessed value.
0 votes Thank Flag Link Tue Jan 17, 2012
Give me a call tomorrow at 631-425-6150 and I will explain the three pricing levels. Gail gladstone
0 votes Thank Flag Link Tue Jan 17, 2012
ME,

This is an often misunderstood concept....

There should be no connection between the assessed value of a property and the asking price. The assessed value is a taxation department created number that is used to generate the annual tax rate.

Now, if you were talking about the appraised value there would/should be a very close relationship between that number and the sale price.

Good luck,

Bill
0 votes Thank Flag Link Tue Jan 17, 2012
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