The market price is determined by what buyers will pay for a property in today's market. If a home is priced correctly, it will reflect the market price and probably sell in a short time period. A real estate agent does a comparative market analysis (CMA) to look at what similar homes (size, style, bedrooms, features, etc.) in the same neighborhood or town have sold for in the most recent 3-6 months. This is how the market price for a property is determined.
If houses are selling quickly, and the market price (sold price) is higher than the assessed value, it tells you that buyers want to live in this area. Perhaps the assessed rates will rise...but that won't make homeowners happy! I hope this information answers your questions.
Be very careful when looking at the valuations assigned to any property by the Palm Beach County Assessor as they are not they same as current market value. Each home and it's immediate surroundings need to be looked at and in many cases these current market valuations will vary greatly from the numbers the county arrives at for property tax purposes.
This morning I just finished a report for a client contemplating the sale in one Jupiter neighborhood and my study of the sales that have closed over the past three months show the 5 homes in his neighborhood that closed during that time sold for an average of 127% of the county valuation.
The absolute best reason to buy in today's market is interest rates that are at historical lows and will go up from these levels. Many analysts predict big jumps from these levels and as rates increase your buying power decreases. If you are buying with cash this interest rate factor is certainly not as important. My recommendation to anyone looking to purchase a home is to interview at least three agents and find one you have confidence will ultimately best be able to help you meet your goals; whether you decide to jump in now or wait on the sidelines a professional agent will be able to provide you valuable information so you can make a knowledgable decision.
If you are at that point I would be honored to be on the list of agents you decide to interview. I hope information helps to answer your questions but if I can offer anything additional please do not hesitate to contact me at your convenience.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
County's assessed value has to do with the size of the building, some features and old sale prices. Market value is all about supply and demand as well as the size, conditon and location fo the home.
Faith Home Loans
My colleagues have all emphasized the need to look at comparable sales in the past 3-6 months and calculating the dollars per square foot living space as the best way to determine a homes value. This is the way a professional appraiser would approach determination of value. A Professional Real Estate agent has access to the systems to easily give you the supporting information you need to intelligently value a property you are interested in. Also, please don't forget, all asking prices are negotiable!!
Good question. The short answer is that the county appraiser's office determines a value for the taxing authority, not for the real estate market. These values (approximately 75% of market value) may be skewed higher from the dramatic increase in values from the recent 'boom'. Future lower valuations will take more time to reflect current market activity you are seeing.
The Palm Beach County Appraiser , Gary Nikolits, says there are many factors that go into establishing their values, one of which is market sales. I can share the 2010 Annual Report with you if you'd like. Just send me a request
As a previous answer shows, market values are the best way to establish what a property is worth now. We Realtors can do a free comparative market analysis for you. A real estate appraiser can go even further to establish an opinion of value for you, for a fee.
Determine what you want and what you want to spend, then work with a knowledgeable Realtor to help you locate a property that meet your goals.
Many of us in the business believe now is a good time to buy because mortgage rates are lower than the past few years and near historic lows. Good luck!