Home Buying in 07920>Question Details

T.A.D., Home Buyer in Basking Ridge, NJ

I was looking at a home listed approximately $400,000 over assessed value. Is there any way that a listing price of that nature is realistic?

Asked by T.A.D., Basking Ridge, NJ Thu Aug 15, 2013

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I live in a town where the "assessed value" on the town tax record is actually 25% of what you are being taxed at. So a home in my town on the tax records is assessed at 100k it is taxed at 400k...
1 vote Thank Flag Link Thu Aug 15, 2013
I agree with the prior replys that assessed values in many cases do not reflect current home sale values, especially in a town like Basking Ridge. I have lived in Basking Ridge for over 25 years and a residential loan originator so I see a lot of appraisals. The Basking Ridge area is now in high demand and recovering from the housing crunch faster than other areas. This means assessments have not caught up, especially if improvements have been made since the last assessment and a larger lot size is involved.

I could recommend you to a local realtor who is familiar with current sales or look up values for you to see why this property is listing for this price. My contact number is 908-531-1721
1 vote Thank Flag Link Thu Aug 15, 2013
The computations are based on different factors & for different purposes, thus assessed value is not an accurate measure of market value.

A way to understand how this works is to look at it from another perspective ; If the list price was $100,000 LESS than assessed value, would a buyer pay the assessed value for the purchase price ?

Assessed values are based on valuation of the land + improvements on the structure.
Market value is the saleble price that a buyer would pay, based on the existing market condition

Shalu Thaman - Realtor,ePRO,ABR,SRES
Keller Williams Princeton Real Estate
Cell # 609.577.5861
Fax # 609.613.5907
http://PrincetonHomeNj.com
0 votes Thank Flag Link Thu Feb 6, 2014
Market value and assessed value is often times very different. It really depends on how recently the Assessor last did the assessment. It is best to look at the most recent comps to determine value, what has sold for in the last 3 to 6 months. Sounds like it could be overpriced, but you won't know until you look at the recent comparable sales.

Best,

Jon
0 votes Thank Flag Link Thu Feb 6, 2014
You should definitely try and look at the market value as opposed to the assessed value as that will be a truer indicator of a fair sale price. Looking at comps of similar homes in town is how you can best determine market value -your realtor should be able to help you with that. That being said, Basking Ridge is a town where the Tax Assessor does try to get the assessed value close to the market value. This year there has been a definite increase in sale prices (with a fair amount of multiple bid situations driving prices up) so it is possible some of the assessments have not caught up yet.
0 votes Thank Flag Link Sun Aug 18, 2013
In Bernards Twp (Basking Ridge) the Assessor does attempt to keep Assessed Values close to market values via annual "adjustments" based on comparable sales info they have. However, they cannot visit every home in the township each year which means the comps they use may not be realistic. Values of similar sized homes can vary widely based on layout, updating, etc. A Realtor would be able to give you a more specific answer relative to a particular home.
0 votes Thank Flag Link Fri Aug 16, 2013
??????
What are similar homes in that area SELLING for?
That is the number you should be analyzing.
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Assessed value, Guesstimates, Valuations, market values are all terms used for specific purposes and often deceptive purposes. Aggregate websites publish deceptive numbers labed as market value..(Deception of the public) Tax authorities publish for specific purposes and in the fine print state, it is NOT market value.
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Whether you are in Basking Ridge, NJ, Palm Harbor, FL or Mingo, WV, you need to know the reliablility of the source (aggregate website) and the purpose for which the number is published. Without this information you are quite literally looking at random numbers.

The market value is revealed in recent sales. That is sales that occured recently, not four months ago.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
Serious people call!
Serious people need reliable data.
0 votes Thank Flag Link Fri Aug 16, 2013
The simple answer is YES if the current market supports it. Taxing authorities try to keep up with the market in their assessments but there is often a gap (sometimes a big one) between assessed value and market value. A home is worth what a buyer is willing to pay and currently good homes in good areas sell quickly and many times sell for above asking with bidding wars.

I hope my answer helps.
0 votes Thank Flag Link Fri Aug 16, 2013
Hi. A few years back assessed values averaged out to be 100 percent. Even then, some were over and others under. The market has changed dramatically and assessments have not caught up. Having said that, some homes on tbe very same street may have different assessments based upon a location deficit or premium, finished basement, etc. the assessed value is but a relative tool, even this year a few homes may sell below assessed value while others are significantly over. Then there are those who appealed their assessment and received an abatement.

Bottom line, the best indicator of value are relative comps, whether or not a home hit an unusually high or low price and why, and all relevant info a true local can offer such as prized amenities, having that extra garage space, and even pools which are supposed to be value neutral, but in Basking Ridge where lot coverage allowances are strict, become a premium prize. Hope this helps
0 votes Thank Flag Link Thu Aug 15, 2013
Each Township/Boro maintains their own goals of how close they like to keep tax assessed values to actual market values. Bernards Twp specifically tries to keep the assessed values very close to market values. That said though, in a changing market - where market prices are moving either up or down - the changes in assessed values will lag a bit behind the market movements until the next time assessments are updated. Then, you have to keep in mind that tax assessments are based on some very basic specs of the home. There will be very valid times when the sale price of a home will dramatically defy the assessed value of the home due to the amenities/updates within the home or things like the amount of land involved. That gets particularly true as you move into higher price points. With all that in mind, your best bet is to look at the tax assessed values as only a very basic guide. The market value is "realist" based only upon what the competing homes are selling for; regardless of what the tax assessed value is. I hope that helps. For more info, don't hesitate let me know.
Chantal Konicek, RE/MAX Alliance
908-612-0862 / Chantal@BaskingRidgeHomesForSale.com
0 votes Thank Flag Link Thu Aug 15, 2013
Assessed value is never correct specially depending on the area you are looking. I just showed a home listed at 170000 but assessed value is 205000.

I would not go based on assessed value. If you want to know if listed price is realistic I would recommend looking at the comps in the area that have sold.

If you need help please contact me.

Thank you.

Melissa Silva
Weichert realtors
201-527-7313
Realestate.mel.s@gmail.com
0 votes Thank Flag Link Thu Aug 15, 2013
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