Home Buying in Wood Ridge>Question Details

Neerav Shah, Home Buyer in Jersey City, NJ

Why are the properties sold for 1.5 to 2 times the assessed value?

Asked by Neerav Shah, Jersey City, NJ Wed Feb 27, 2013

The property taxes are paid on the much less assessed value while the ask price is more than twice of the assessed value. What drives the the ask price of the property so high(apart from the seller's notion of the demand for property)?

This question was asked from this property: http://www.trulia.com/property/3109981029-249-Marlboro-Rd-Wo…

Help the community by answering this question:


The assessed values in Wood Ridge are only at 67.23 percent of the full value. This is determined by the equalization ratio. Every towns assessments differ. Some towns have assessments that are more than the current value. This is due to the fact the may have had reavaluations when the market has high. Generally the lower the equalization ratio the higher the tax rate.
0 votes Thank Flag Link Wed Feb 27, 2013
Thanks for your quick replies. Great help!
Flag Wed Feb 27, 2013
Also, not to say some sellers just are asking too much too! A home is worth what a buyer is willing, ready and able to pay.
Flag Wed Feb 27, 2013
Not in all cases. Even 100% assessments may not be what a buyer is willing to pay. Also, there may have been additional improvements, such as new kitchens, baths, etc that are not yet reflected in the assessed value. Assessed value is not always "market value" .
Flag Wed Feb 27, 2013
So, when you say the assessed values are ~67% of the full value, a reasonable estimate says that the actual value can be ~1.5 times the assessed value, but it does not justify 2 times the assessed value.
Flag Wed Feb 27, 2013
assessments are done only about every 20 years so often the values are far from accurate. In some cases where reassessments were done around 2005 values are actually less which is a real problem as assessments are never supposed to be higher than market value. (Its a pretty easy appeal in these cases)
0 votes Thank Flag Link Wed Feb 27, 2013
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