Home Buying in Kensington>Question Details

Chuckt, Home Buyer in Kensington, MD

Overpriced listing in Bethesda/ Ch Chase; is our offer reasonable?

Asked by Chuckt, Kensington, MD Mon May 21, 2012

We found a listing that's $200K over assessed value and has been on market for 100 days or more (haven't seen contract on it); local comps don't support asking price. House nice but has a few small issues. Location has some drawbacks. Seller has had at least 4 open houses and dropped price a little bit recently. We can offer 60K over assessed value....is that reasonable for this market?

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The assessed value can often be very different from market value so I it is hard to know whether offering $60k over the assessed value is reasonable. In the end, it's the sellers decision to make as to whether your offer is reasonable to him or her. Each seller has a different bottom line.
0 votes Thank Flag Link Sat Dec 28, 2013
Hi, Chuck, take a look and review what homes are selling for bethesda. See what your neighbors are selling their homes for and other community trends.
0 votes Thank Flag Link Fri Feb 22, 2013
Hi Chuckt, you may offer what ever you like. May I help you with your offer? contact miekeba@heymannrealty.com
0 votes Thank Flag Link Sun Feb 10, 2013
Bethesda is a unique area. I use http://www.eppraisal.com and my appraiser to determine my decision. You made a fair assessment.
http://www.kensingtonareahomes.com
0 votes Thank Flag Link Sun Feb 3, 2013
Hi Chuck,

When you say $200k over assessed value are you speaking of the tax value? Unlike some other states (such as Florida) assessed tax value has no correlation to market value. And open houses are a pretty antiquated way of marketing. Those are generally held to help the agent find more buyers. I know of very few cases where an open house has worked to sell the house. Have your agent prepare a market analysis of the area. If that indicates that the house is overpriced by $200k then make a reasonable offer. If the sellers don't accept it, move on. No one wants to over pay for a home!
0 votes Thank Flag Link Mon May 21, 2012
The assessed price has nothing to do with the value.
0 votes Thank Flag Link Mon May 21, 2012
Hi Chuck - In many (most) cases, the tax assessment bears little resemblance to a home's actual market value. A home can be worth significantly more or less taking into account improvements, location (main road, powerlines, etc). And, the tax assessment values are most often made by a guy in a cubicle who's looking at data in a spreadsheet. If an area has had few sales - when the assessment was done - the tax assessment can be wildly off the mark. So - in short - I don't consider the tax value valuable input when recommending a list price, or when making a purchase offer.

Your offer should be based on an analysis of recent, comparable sales. Sometimes this can be tough given the characteristics of the subject property. It sounds like you plan to go in $140,000 below asking price. Is that reasonable? It depends on the list price of the home. If you're offer is 8-10% below asking price, the seller is probably better off dropping the list price to attract more buyers.

Lastly - ultimately a home is only worth what a buyer is willing to pay for it. Good luck.
0 votes Thank Flag Link Mon May 21, 2012
Hi Chuckt,

Thanks for having the courage to ask a tough question.

In a lot of cases the tax Assessment is not updated to the current market value of many properties. With the fluctuation of values significantly affected by the foreclosures/short sales of the area, you'll want to do a search to see the recently sold properties of a similar style and ammenities to the house you're looking at.

We would be happy to help you with this, it's free and takes 5 minutes of your time.

Let me know if I can help. I'd love the opportunity to work with you!

Thanks,
Chuck
0 votes Thank Flag Link Mon May 21, 2012
It's tough to say with the information you've presented. If the comps don't support it, then that is certainly reason to make a lower offer, but the assessed value (I assume you mean County Tax Assesment) really is not a good way to judge a sales/purchase price.
0 votes Thank Flag Link Mon May 21, 2012
Hi Chuckt,

Don't base your offer on assessed value or list price. Have your Realtor do a Comparative Market Analysis (CMA) on the property using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD within the last 3 months. This will give you current market value and this is what you should base your offer on. Assessed value is not current market value.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Mon May 21, 2012
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