Home Buying in Boston>Question Details

kjrmcmahon5, Home Buyer in Boston, MA

why do the brownstone condos in Back Bay Boston we have looked at have an assesed value $100,00 to $200,000 under lisitng price?

Asked by kjrmcmahon5, Boston, MA Wed Mar 6, 2013

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7
This is a great question. Most buyers and a few sellers do not understand this phenomenon. Seller's appreciate the fact that they are paying less taxes based on the assesed value but feel good when they see the Market Value of their homes! Here in California we have Proposition 13 which the taxes are based on when the Property was purchased and home ownere pay based on the actual Purchase Price.


Endre Barath,Jr.
Prudential California Realty
Beverly Hills, CA
homes@endrebarath.com
310.486.1002(m)
Web Reference: http://www.endrebarath.com
1 vote Thank Flag Link Sun Mar 10, 2013
Assessed values usually run 12 to 18 months behind the market so they can be too high or too low depending on the market - and sometimes it's impossible to work out where the thought process was! They should not be used to determine actual value.
0 votes Thank Flag Link Wed Mar 20, 2013
Assessed value and market value are completely 2 different creatures.
The market value is what the seller (and/or the market) wants for his/her property. Assessed value is the city's estimated value for tax purposed only.
At times, the assessed value is over the market value, in which case the owner has to file a petition with the city to reduce the assessment and the tax that comes with it.
0 votes Thank Flag Link Thu Mar 7, 2013
Assessed value is used to calculate ones tax burden and it uses a completely different formula than current market value so 9 times out of 10 you will see a big difference between assessed value and list price. It is a number worth considering but not one worth basing your purchase price on.

Here is every property on the market in Back Bay:
http://territory.com/search?search_string=BACK+BAY%3ABOSTON&…

Hope that helps!

Territory.com
Boston's Premier Brokerage for Buyer's
617 848 5407 x701
Web Reference: http://territory.com
0 votes Thank Flag Link Thu Mar 7, 2013
Hello,

The most simple answer… in the City of Boston most Tax Assessments (as a representation of value) are not up-to-date with the current Real Estate Market. Tax Assessments are based on a broad range of market data based on a history of sales in that area, and Assessments will slowly increase or decrease along with the current economy and Real Estate market trends. An Assessment anywhere from 10% - 25% below List Price is not uncommon.

Other Towns in the Greater Boston area may have Tax Assessments closer to actual List Price, especially if they are in an area known for better schools or higher municipal costs (police, fire departments, etc…).

The fact that the City Tax Assessment is lower than List Price does not necessarily affect the value of that property in the “real” Boston Real Estate Market; and keep in mind that a lower Assessment will mean lower quarterly Property Tax Bills.

Please feel free to contact me directly for further assistance with your property search.



Norman D. Hodson
Direct Line: 617-861-3630
Cellular: 617-818-2101
Direct Fax: 617-294-4396
Email: normanhodson@kw.com
Website: http://www.MyBostonRE.com

Keller Williams Realty
BOSTON - METRO
607 Boylston Street, 5th floor, Boston, MA. 02116
Office: 617-542-0012 . Fax: 617-542-0016
http://www.kwbostonmetro.com
0 votes Thank Flag Link Wed Mar 6, 2013
in real estate there are many ways that the value of a property can be found. A few of them include market value, assessed value, appraised value, and broker price opinion just to name a few. In your case the assed value is just what the city assesses the property at mainly for tax purposes. But you have to take in consideration that the market value is going to be the value that you (buyers), the end consumer, value the property to be in your eyes. Finally when the property is under agreement a bank appraiser will come by and give you an appraised value and usually that is very close to the market value. Hope this helps out. If you need help in searching some properties in Back Bay or just any of the Boston area in general feel free to call or email me, I may be able to help you out with any more questions as well as guide you through the whole sales process.
0 votes Thank Flag Link Wed Mar 6, 2013
Assessed and list/sale value are different animals. Assessed values are solely for the purpose of taxation. Typically assessors use a desktop software to spit out a value based on sq feet, lot size, permits applied for, etc... It is done on the 1st of January for the upcoming fiscal year, in Boston the fiscal year runs July-June. So the assessed value you are seeing now was generated on Jan 1, 2012, over a year out of date.

Assessments do not take into account for style, layout and other "soft" characteristics that can add or subtract tremendous value on a property.
0 votes Thank Flag Link Wed Mar 6, 2013
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