Home Buying in Shrewsbury>Question Details

Traci, Both Buyer and Seller in New Jersey

how much should you offer over the houses last asessed value ? ex: 2010 house was asessed for 239,000 asking price is 320,000 my last bid was 265,000

Asked by Traci, New Jersey Thu Feb 16, 2012

Help the community by answering this question:


Hi Traci, The most clear answer is that the assessed price should not be your primary guide when making your offer. Shrewsbury Borough has been ordered by the Monmouth County Tax Board to conduct revaluations of property this year, precisely because the current assessments have very little relevance to current market value. The last revaluation was done in 2002. Here's an article I wrote last week about the order to reassess in Shrewsbury, Fair Haven and Little Silver: http://actvra.in/t6F

As always, your offer should be based on current market value, not the asking prices of homes that have not sold, not the assessments, just the current market value. The agent handling your offer should be guiding you on this, so that you have a clear understanding of offers relative to market, not assessed value.

Good Luck with your purchase!
1 vote Thank Flag Link Thu Feb 16, 2012
Something else you can do is ask your agent to run assessed/sales price ratios for you. That may help.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Fri Feb 17, 2012

Glad you used the advise given here to make a sound decision on fair offer amounts.

One caveat....do not use online "valuations" such as Zillow's zestimate, they are not always correct nor do they take into account upgrades to a home and location (to a point....even in a specific zip code there are subsections which are valued higher or lower depending on their location).

As you have learned, the best and most accurate comparatives come directly from the MLS, which reflects TRUE recent sales prices.

Good luck !!!
0 votes Thank Flag Link Fri Feb 17, 2012
Traci...good luck! I hope you find the home of your dreams!
0 votes Thank Flag Link Fri Feb 17, 2012
Thank you all for your info. It was very helpful. Yes my agent is working on the comps around the area Iam also getting a lot of info on zillow.com they have all recent sales around the house I want to buy so I'm going in with some knowledge also. we are going to see the house a 3rd time just to look it over again. I always thought to look at the asessed value but as u all wrote that's not the number to look at to make your offer from.
0 votes Thank Flag Link Fri Feb 17, 2012
Assessed value should have no impact on your bid. Recent comparable conventional sales (not short sales or REO sales) are used by appraisers and REALTORS. Ask your REALTOR what recent sales indicate.
0 votes Thank Flag Link Fri Feb 17, 2012
Hi Traci,

Since you are actively involved with placing a bid, I must defer advice to the agent who represents you. I would not attempt to venture into making any suggestions on your pricing or strategy.

I can provide this link...which provides the equalization rates for Monmouth County. Perhaps you can contact the County offices for assistance in understanding the relationship of assessed values to market values and discuss the comps with your agent. Please note that this chart is nearly one year old. Also, if you intend to evaluate properties from this perspective, keep the margin or error rate in mind.

Where we see equalization rates most commonly used is in tax appeals, not purchases. The data used by REALTORS for providing marketing analysis and pricing opinions is recent comparable sales. Appraisers also use recent comparable sales as the most frequent method for providing an appraisal.

Still, I attach the link below for data on tax rates and equalization ratios.


Best of luck in your search.

Deborah "Deb" Madey - Broker
Peninsula Realty Group - Red Bank, NJ
0 votes Thank Flag Link Thu Feb 16, 2012
Deborah Madey, Real Estate Pro in Brick, NJ
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