One of the agents who answered your question earlier, Jeffrey Carter, said it well. Home sales are based on market value and not assessed value.
Just to expand on his answer, the market value of a home is determined by what buyers are willing to pay for it. The only way we can get an idea as to the market value of a home is to look at homes in the same local market, that have sold in the past 6 months, that are most comparable to the home currently on the market.
When I say most comparable I mean style, number of bedrooms, bathrooms, location, condition, features, updates, etc. Based on that, an agent, knowledgeable in the local market, will be able to come up with a price range in which the active home would be expected to sell. Where in that range will be determined by whether the home is more comparable to the homes that sold in the upper end, middle end or lower end of that price range.
Whether you are selling a home, or buying a home, you can ask an agent to do a market analysis of the home you are considering. All the best!
A more important value would be what have buyers been willing to pay for a home within a 1-2 mile radius of the home with similar qualities within the past 3-6 months.
Remember that a bank appraisal is based on sales in the past 3-6 months (more often 3 months) for similar homes. Most buyers will be taking out a mortgage for their purchase, and sellers should take this issue into consideration.
This question is one that is very hard to answer and truly in Massachusetts is town specific. I have found working in several different communities that each town's assessed values is a little different. If you want an across the board answer I would say the assessed value can be a barometer, but until you study the market of interest you can not come to a conclusion. I am selling a home in a market where the house is selling for $200K under assessed value for the town. Best
A quick analysis in Gloucester shows that out of 52 properties sold the average sale price was 398 the average assessed price was 389. While very close there were properties that sold for hundreds of thousand more than assessed price and some that sold for hundreds of thousands less.
Assessed value is a valuation that the town puts on a specific property for tax purposes. At best this number is updated once a year. Home values have dropped in the last 12 months in most markets so in sticking to that theory you'd be overpaying if you based your offer on the assessed value, right? As a home buyer, you should be asking "What is the market value of 123 Main St" An experienced Buyer's Agent will be able to get you that info quickly.
My website provides lots of helpful info for buyers.
Best of Luck!
Jeffrey H. Carter, ABR
Keller Williams Realty
That's a pretty broad question, so it may be impossible to answer. I can say that in the SF Bay Area, regular sales are coming in at close to the assessed value or a few percent lower. For distressed sales, it's common to see deals close at 10-20% below the assessed value.