Home Buying in 01069>Question Details

Unknown Name, Home Buyer in

why do they price a home above assessed value when no other home on st. sold over 175000

Asked by Unknown Name, Sat Dec 1, 2012

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8
Has it sold yet?

I would contact a local real estate professional to help with this answer and to save time and money.


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0 votes Thank Flag Link Thu Dec 12, 2013
A home is only worth what some one is willing to pay for it.
0 votes Thank Flag Link Sun Dec 2, 2012
Great answers here! There's still confusion as to assessed value and fair market value (FMV) in every local related to real estate. To obtain FMV it is important to gather like-kind information on similar properties in close proximity to the subject property. Adjustment are made for home renovations and updates. In part, comparable properties are adjusted -/+ and a FMV is set for the subject property. Appraisals offer far more detail than agent CMA reports. However, majority agents typically come within $5,000 of appraisal value based on my experience.

Sellers may set the value higher for any number of reasons, credible or not. Regardless of list price, a higher than normal list price should not deter a buyer from looking at or even submitting a FMV offer on a property.

A list price is just an openning offer, northing more nothing less. I would not read too much in to advertised list price. A good buyer's agent will perform a CMA anyway and the agent and buyer will act/negotiate accordingly. Good luck to you!
0 votes Thank Flag Link Sun Dec 2, 2012
That's an excellent question. It's good to remember that the price of a home for sale isn't always based on the Realtor's educated recommendation. Very often, a homeowner will feel they need to "try it at this price" for any number of reasons. Unfortunately, that often results in selling the home for less than it would have sold if they'd come on the market with a competitive price.

It's also true that the assessed value may not reflect work that's been done to the home since the last time the town did assessments. I've found in my real estate business, that the assessed value is so far off, so many times, from the true market value, that I almost wish it wasn't on the mls data sheet! It sometimes confuses things. It really does have no bearing on what the home should be listed at to sell.

Hope that helps! If I can be of further assistance, email me at deborahsellshouses@gmail.com, or give me a call anytime at 413-530-8356. Thanks for asking!
0 votes Thank Flag Link Sun Dec 2, 2012
Assessed value and appraised value are based on things that have occured in the past. Assessed values also depend on how the town values its homes, 70% or 100% of market value. Assessed values are based on the town getting into the home to determine the condition (sometimes they cant get in, and therefore may under assess or over assess them).

Appraisals are based on past sales as Ron says typically with in the last 3 to 6 months, along with 2 current lisiting, but the banks want everything bracketed (beds, baths, lot size, gla etc) so values can vary greatly based on a rising or falling market place.


My feeling on appraisals (I am a certified appraiser as well) is that it should be a two step process and the appraiser should not have the sales price of the home initially, therefore not having a target to shoot for.
0 votes Thank Flag Link Sun Dec 2, 2012
As what Ron Thomas said, the assessed value has nothing to do with the listed price of the home--which is usually based on the Comparative Market Analysis performed by the listing agent.

The assessed value is primarily used by the town to calculate property taxes.

I hope this helps.

Best of Luck.
0 votes Thank Flag Link Sun Dec 2, 2012
The Assessed Value has nothing to do with the Appraised Value, nor the Market Value:
The Assessed Value is determined either by the Assessor or by the Last Selling Price of the Property.
The Appraised Value is determined by the last Appraisal, which is valid for 60-90 days and for that specific transaction.
The Market Value is determined whenever the Property is SOLD: An estimate as to the Market Value is derived from a Comparative Market Analysis, (CMA), done by a Real Estate Agent.

It would be interesting in many cases, to plot the three different numbers on a chart and see how they differ.
0 votes Thank Flag Link Sat Dec 1, 2012
I'm assuming you're referring to the listing agent and the seller's choice in pricing. In that case, what they're looking to do is to price the home close to the market price. The assessed value is just the assessor's opinion. It has no bearing on the current market price. Each time a home is sold, the assessed value is reset by the market price, which is accepted by the assessor as being more accurate.

Conversely, during the housing bust phase, plenty of homes were listing for below assessed value. Again, the market dictated the list price, not the assessor.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Sat Dec 1, 2012
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