If this home's assessed amount is lower as you say, consider it a (temporary) blessing. Many homes in PG County are still assessed WAY high compared to their current market value, and homeowners are paying the difference. Until the difference is brought to their attention due to a purchase/buyer, an appeal to re-assess, or scheduled re-assessment it will stay out of sync with the market value.
More than likely, when it comes time for the next re-assessment (done every three years), it would fall relatively closer to the purchase price, so in this case, the taxes may go UP, making the monthly payment go up also. Good luck. BTW I am a life-long "Laurelite." If you have questions about the area or need Real Estate advice give me a buzz. Good luck!
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
The tax value may have some correlation to the home value but a much better gauge of value is going to be looking at recently sold homes and home sale trends in the neighborhood. I've had homes sell well above tax value and homes sell below. Tax value has never been a factor that I use as a real estate pro when pricing a home.
The tax assessment value on a property is not the same as the appraisal or market value. The value of a property is determined by what the market/buyers are willing to pay for it. The indication of that would be in the recently sold comparables in the community and/or area.
Your real estate agent should be able to pull comps in the area for you to give you a clear idea of value in the area. If you don't have one yet, i would be happy to be of help. I live and work in Laurel.
Exit Right Realty, Laurel MD
The best place to find out market value of a home is with a CMA (comparable market analysis) performed by a Realtor. An agent can pull the most recent sales data and actually compare the homes side by side in terms of baths, bedrooms, square footage, upgrades, renovations, updates. As an agent, I will sometimes look at the tax assessment values vs sold prices of recent homes to get an idea of what percentage range they are in comparatively, but honestly I don't put much weight on the value itself. Solely what the relationship has been between the 2 values.
Get a great agent with lots of knowledge about the area you are pursuing to make sure you are getting the right deal. No county assessor could tell you that!
Tax assessed value is a basis for your real estate tax. It is just that. Market value sometimes may be greater or less than the tax value. Market value is what buyers are actually paying for homes similar to yours. If you are getting showings you may be close the the market value. If you are getting offers after showings you are very close to the market value. Hope this helps. All the best.
For homeowners trying to sell a home, market value (what the home will sell for to a ready, willing and able buyer) is the most commonly used.
Find out more about your local real estate market condition by analyzing current sale price, tax assessed value, home sale inventory level, distress sale and price index online for free at http://www.searchq.com or check http://www.nextace.com for updated property tax record.