You have some great information from my colleagues. Some upgrades are worth more than others, but assume that you already know that. The listing price of a home should be based upon what other "comparable" homes in the area are selling for, not what the assessed "taxed" value of the home is. Sometimes that is below tax value and sometimes above tax value, and sometimes it is completely out in left field because a seller is determined to list at what they want and not what a Realtor or market data is suggesting they should list at. So it could be that the home you are interested in, is grossly overpriced because of the last scenario that I mention. As far as how much you should negotiate, that question is really unanswerable because we don't have enough information. My advice would be to look at homes that are comparable to the one that you are interested in, in the same neighborhood, and offer the same amenities. The sale prices of those homes will supply you with negotiation information. Your Realtor should be able to give you this information and supply you with an estimated market value on the home you want to negotiate on. Are the upgrades really worth that much? The comparables will give you your answer. Good luck and happy house hunting!!
Tru Value Realty
You can see my long blog post on tax values here.
Remember the tax appraiser has used a computer generated model. They've never seen inside the home or probably even the outside of the home.
Most people want high sales prices, but low tax values and will do everything they can to get the tax value lowered. Depending on how long and how much they fight, virtually the same home on the same street can have widely different tax values. As a realtor I don't really care about tax values in most instances.
Licensed Mortgage Loan Officer
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Some sale much above tax value and some way below.
Perhaps other agents can help....
A property I reviewed showed that it has consistently been assessed at same value for recent years. The current seller did not make that mistake of not reviewing information. There may have been some upgrades but I don't think it can worth $100K. Can buyers in this market really overprice their homes that much and be successful in selling?