Home Buying in Parlin>Question Details

Balaji, Home Buyer in Parlin, NJ

Is assessment for Property tax and indicator at all for the value of the house?

Asked by Balaji, Parlin, NJ Tue Aug 17, 2010

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6
Anna Brocco’s answer
Assessed value really has no bearing on value--in order to establish a fair value, you need to be aware of recently sold similar properties in the immediate area--after reviewing the data a determination can be made--ask your agent for comps.
1 vote Thank Flag Link Tue Aug 17, 2010
BEST ANSWER
Balaji, back in the day, this could have been used as an indicator, but in today's market...I don't even give it a second thought. There are some properties that seem to sell close to what this number indicates, but then I have sold some houses where they are even less than the assessed value. It really comes down to like properties that have recently sold in the area. Your buyers agent can do a market analysis to see what is selling so you can make an informed decision when making an offer. The other thing is that if someone who has lived in a property for example, 40 years, this number can be way low and the house may sell for way over the assessed value, multiplied by two.

I hope this information helps! Best Wishes!
Web Reference: http://www.GoMelinda.com
0 votes Thank Flag Link Tue Aug 17, 2010
At the very moment in which it is assessed, it is supposed to be. However like john said, its your tax collector telling you what your property is worth and the higher they assess it the more taxes you have to pay, sounds like a scam to me, but even in an honest world, the assessment is old news a month or two down the road when home values may have changed, the assessment stays the same and can do so for many many years.
Web Reference: http://www.sjrates.com
0 votes Thank Flag Link Wed Aug 18, 2010
I'm convinced that assessments are based more on the county's tax revenue requirements than the value of the property.
0 votes Thank Flag Link Tue Aug 17, 2010
Town assessment for tax purposes can be very close or way off base. Certainly not a good source for deciding the true value of a property just for that reason. Many times they have not seen the interior of home in several years and the owner may have done many upgrades and improvements that the town does not recognize. Then there's the property that has been completely been let go and the town has not accounted for that either. There are so many variables to asseesmnents that they can be relied on for a true value source. That's why we need REALTORS :O)
0 votes Thank Flag Link Tue Aug 17, 2010
Not usually. The assessments are really a means for the municipality to determine your taxes. The tax rate and the assessment are used together to ensure that the taxes being collected allow the municipality to balance the budget. Assessments need to be done periodically to keep things in check but they are not done often, as they are expensive and time consuming. Also as people improve their homes, assessments are adjusted, and each town may assess different homes within the municipality differently. I would not use assessments for much except as it applies to taxes. Value is determined by the market place, not by the assessor. I would use a good Realtor or appraiser to help you determine value. Hope that helps.
0 votes Thank Flag Link Tue Aug 17, 2010
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