My thughts:

(1) The accuracy of township assesements is traditonally 15% plus or minus the actual assesement.

(2) Consider thi year in wihich this assessemtn took place

(3) Consider the market decline since the assesessment

Involved all of the above factors in determining true current market value.

Love and Peace,
Francesca, epro, SRES
732.606.2931

Honestly speaking,

If you are buying in a declining submarket, then declining prices set the value.

Not the taxman.

If you are buying in a steady or rising submarket, then steady or rising prices set the value.

Not the taxman.

Only buyers determine value.

The taxman is very confused and underfunded right now - watch out for him...

As already stated, the total assessed value is not a good indicator of value. This is used by a municipality for tax purposes.

The best way to judge value is a comparative market analysis (CMA). A REALTOR can provide you with a CMA which will take into account the home (ie sq footage, beds, baths, basement, garage, lot size,etc). A CMA uses similar properties that have sold, the best indicator of value.

Recent sales in my area shows homes sold below assessed value by $13,000, $70,000 and over $100,000. There are also several homes that have been sold at more than $20,000 over the town's assesment.

Ask a REALTOR for a CMA on the property you're planning to purchase before you tender your offer.

Good Luck, it's a great time to buy!

Laura Giannotta
Keller Williams Realty - Atlantic Shore

I would not use the assessed value as an accurate measurement of the market value. It's just not a reliable approach unless you're just looking for a very rough, ballpark estimate and even then you must find out the "ratio" for that town... the ratio is set each year for the average assessed value divided by the actual sales prices of homes for that year.

The correct approach is to compare the property to others like it that have recently sold.... comparable sales.

As for whether you got a good deal.... read this blog article.....
http://hometeamnj.com/?p=316


I hope that's helpful... if so, click the "thumbs up" below,

Joe Montenigro
Broker Owner, REMAX Home Team
serving Gloucester Twp and Southern NJ
http://hometeamNJ.com
http://joemonte.vflyer.com
http://www.facebook.com/joemontenigro

The taxable assesment only shows the value of a house at a snapshot in time. Towns are only required to assess the properties in that town every 10 years and since every house is assessed at the same time provides a fair vaue for figuring the taxes for each property.
So it could be that a town was assessd as long ago as 2001 so it is conceivable that a house could be as much as $100,000 above that value but if the reassessment was done in 2007 it could $100,000 less. ( these are extreme numbers but I hope you get the idea)
The only way you can use assessed value to gauge the value of the house is to find another house that has sold recently and which has roughly the same assessed value.
Unless you are very experienced in these things you really need the help of an experienced Realtor to advise you.