Kate,

Taxes are never a reliable tool in evaluating the price/value of a home - one might think they should, but they are not.
For one, taxes ALWAYS follow the real estate market - by default, they are at least one year behind, and tax rates revolve more around the county BUDGETS than true home values.

It is not uncommon for the same model in the same neighborhood to be assessed diffrently.

One of the reasons might be that occassionally homeowners finish a basement or ad a room "illegally" and that may be a reason for a lower tax assessment.

This is why it is important to ask for building PERMITS - lack of proper permits will come back later when it is your time to sell, AND, most importantly, it is a safety issue. You would not want a fire in your house because previous owner installed unsafe electric system, etc.

A good Buyer Agent will prepare a CMA for you and that is the best guideline - and the best rule: shop and compare.

Skip the tax assessments! You are trying to compare apples to elephants. Use the comps and your agent.
Carole Burnett

Why be concerned with 2008 tax data at all?

Look up the NEW 2009 assessment on the Fairfax County Tax Administration site (referenced below), click on Values, enter the address, and view current information.)

Hi Kate,


Monika again!!

One quick tip, this time of the era - Real Estate is exceptionally lacal.

In the same zip code two neighborhood at Arms length can offer same sq ft house at a High Range of diffence in price.
Yo have to have someone smart and familiar with neighborhoods and market to provide you data and charts not just verbal information.

It is a lot of Homework to be done before you decide to offer.

Tax assesment is just one little aspect of it.
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Usually upper end market is little different than average home sales market.

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Other thing to keep in mind is what type of sale is it? REO , SSale, Resale, Relo - that can have an impact on offer price too..

hope the tid bits help.:)

Monika

Hi Kate,

I think I'm pretty much going to echo the answers you've already received. Ask your agent (I assume you have a buyer's agent) to develop a list of the comparable sales in the last 3-4 months. You might also want to look at other comparable homes currently on the market to see if there is movement in their listing price and how long they've been on the market. Your agent can do this by looking at property history.

I'll close by saying that your agent is in the best position to advise you on that specific home.

Impossible to say. You really have to look at the comps.

Ignore the tax assessment. Forget it. Doesn't matter at all.

Granted, in Fairfax County properties are supposed to be assessed at 100% of fair market value. But they don't, and even Fairfax County acknowledges this. Here's what Fairfax County itself has to say:

How do I know my assessment reflects fair market value?
(as referenced in the green flyer enclosed with the 2009 Assessment Notices)
Assessing property is not an exact science and typically is a mass estimating process, not individual property appraisals. Assessments are considered to be a good estimation of fair market value if they are reasonably close to the sale prices within any given neighborhood. The acceptability of values is measured by the Assessment-to-Sales Ratio (ASR). The ASR is derived by dividing the assessed value by the selling price.

"Given the size, complexity and diversity of properties within Fairfax County, fair market value is deemed to be reasonably estimated if assessments at the neighborhood level generally average in the low 90's percent range when compared to sales prices. If the relationship between assessments and sales prices for a given neighborhood falls below this range, assessments normally need to be raised. If the assessment-to-sales ratio is above this range, assessments may need to be lowered." http://www.fairfaxcounty.gov/dta/realestatetax_asr.htm

So, Fairfax County is content with a 10% variation, and acknowledges that a greater variation is possible. That means, even if the county's assessment is within tolerances, the house you're looking at might really be worth anywhere from $883,800 to $1,080,200. Kind of a wide range. I'd hate to make an offer of $1,080,200 on a house only worth $883,800...or even an offer of $982,000 on a house worth $883,800. And, again, that's assuming the assessment is within tolerances.

So: Forget the assessment. Determine what comparable homes have sold for within the past 60-90 days. In today's market, it gets a bit dicey if you go back even to 180 days, with is the default time frame for coming up with comps. Work with your Realtor and develop a strategy based on the facts.

Hope that helps.

There are a number of factors that help to determine the offer you should make on a home. First, you would want to know the condition of the home and what, if any, repairs would need to be made. The neighborhood in which the home is located can make a big difference in what amount you might want to offer. The schools, access to public transportation, hospitals, shopping, etc., are all criteria which you should weigh before making an offer. Once you've evauluated all that data, a good market analysis of recent sales can help finalize an offer in which you will feel confident you have offered a fair and reasonable price. One main point I aways make to my buyers is to remember, "The Market sets the price, neither you, the seller nor the listing agent."

A good buyer's agent will go through all the points that you and your family consider important for your new home, and they your agent will prepare a comparative market analysis of recent sales in the neighorhood where the property is located.

Best wishes with one of the most important purchases of your life.

Carol Czarkowski

Hi Kate,
There is much that depends on the actual home, the updates, the location etc. As a guide you can take into account the 2008 tax assessment and the average percentage that the comps have sold in relation to the 2008 tax assessment. But keep mind that it is only a guide. Many of the other factors stated earlier should be assessed as well.

It's pretty tough to give advice about this without looking at the comparable sales in the area. The comps will give a good statistical picture of what was expected and what was accepted. Your buyer agent should be able to prepare Competitive Market Analysis for you based on the sales in the area.

Good luck.

Mary Margaret