The just market value is typically lower than the actual market value in order to account for the costs of the sale. If you're interested in determining what the home is actually worth, the best thing to do is ignore both the tax assessment and the listing price altogether.
In most cases, the county assessor has never even visited the property and therefore can't accurately determine the value; their value is determined by calculating aggregate values and then working backwards based on recorded features (bedrooms, bathrooms, square feet, etc.) Their system ignores the features that can either add or detract from values.
On a side note, online valuation tools on national websites use the same data and are horribly inaccurate. One major player, for instance, discloses that their own estimates on homes in our county are within 20% of the actual value 50% of the time. That's horrible math!
The listing price, of course, is set by the seller - and that's someone who has a vested interest in getting as much money as possible for their home.
The only reliable method for estimating a home's value, and therefore determining a purchase price, is to actually compare the home side by side with other comparable homes that have recently sold. Adjustments must be made on an individual basis based on common sense and historical data. This is a labor intensive process, but it's where a good agent will really shine!
Re/Max Alliance Group
GRI, Certified Distressed Property Expert
Your question is a good one...one that has lingered in the real estate world for many years. The reality of "just market" value is that it has very little to do with the actual current value of a home. As stated previously, it is a department of taxation number that is used for the purpose of establishing a basis fo taxation. It is a number that is typically not a good reflection of the home's value in the real estate market.
Today's buyers should disregard this information when buying and use comparisons for similar property sale in your local market. This is a process that an appraiser would use to establish a value for a home and ine most real estate agents can perform as a CMS (comparative market analysis).
Great attentin should be paid the the market value of a home because for financed homes that do not appraise for the sale price, lenders will shy away from offering financing for the property. As a buyer it's imparative to have a close appreciation for a home's value.
Working with an experienced agent will help you not only help you identify value but insure you can obtain the home of your choice.
As a result, this candidate vowed to bring the assessments down. And he has! People in Sarasota County have seen their property taxes drop 15-25% in the past couple years.
But in doing so, he has gone a bit too far the other way. True market value is above the tax assessor's market value in 90% of the cases. In some areas, like Longboat and Siesta Key, properties typically sell for 20-40% above the assessed "market value".
So I would have your realtor do a market analysis of the particular area you are looking in. But don't be surprised if he or she comes back with a suggested offer price that is over the assessed value. If you want to get the home or condo, you will probably need to go higher than the tax value!
The Tax Assessor in Sarasota County, typically tries to assess at 88-90% of Value to allow for discounts to the price, commissions, and documentary stamps paid by the seller.
Michael Saunders & Company
440 Gulf of Mexico Drive, Longboat Key Fl 34228
And... Short Sale and Foreclosures WILL be used by the licensed appraiser that ultimately determines the market value for your lender (if you're getting a mortgage) so you MUST use those as comparables when determining what the house is worth.
Hope this helps.
Just wanted to say hello and hopefully get some to time to sit down with you when I am on Cape Cod this August.
Hope all is well,
Teresa M. Fellows
Waterside Realty LLC
The Marie Souza Team
Cape Cod Real Estate Services
Miami Beach Real Estate Guy
BRIAN A. MCGREEVY
Broker/Owner, REALTOR, MBA, GRI, RRS, ABR, AHWD
2007, 2008, 2009, 2010 & 2011 Best in Client Satisfaction
Five Star Award Winner
Sarasota Home Realty
2100 Constitution Boulevard
Sarasota, FL 34231
Phone: (941) 544-6763 FAX: (941) 866-7588
You would not believe how often I get this question! I have had many buyers wanting to base their offer on the tax "ADJUSTED" market value. An this is how I explain it. Instead of "just" market value, think of it in terms of "Adjusted" market vale. The value of the home has been adjusted downward to make the tax burden less onerous. The "adjusted" value has nothing to do with the true sales or the bank appraised value.
One should NOT base an offer on the "adjusted" market value. Instead use your Realtor to provide you with current sold comparables within a mile of the home, within the past three months, of like or similar properties. Good luck and have fun shopping in the exciting real estate market!
Charles Rutenberg Realty
Just (Market) Value reflects sales as of a cut-off date so that communities can assess property taxes.
However, sales continue after that cut-off date as the market continues to operate. If previous values reflect lady year, it could hurt your efforts to buy.
Your agent will prepare a sheet of comps based upon similar homes with similar amenities in close proximity and sold within the last 3 months if they are any good at all.
That's what you base your offer on.
Kevin Cloutiet, Realtor
Southern Premier Realty
Cape Coral, FL 34914