Home Selling in 53005>Question Details

Kip, Home Buyer in Brookfield, WI

A real estate agent stated that a property was 61K below "fair market value (FMV)."

Asked by Kip, Brookfield, WI Sun Jul 4, 2010

The FMV was derived from Waukesha County appraised and/or equalized value. Beth said that this is what the County shows. I could not find FMV used on the county website. I believe this is being disingenuous marketing.

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7
Just to add something to this:

I have seen houses for sale that state something like this:

For sale under assessed value. Assessed in 2008.

The fact is that any appraised value done 1-3 years ago is like tying to figure out what your 4 year old car is worth by looking at a 3 year old kelly blue book. The value has changed so much since it was done then that it has nothing to do with todays value at all. It could be 25% too high or worse.
0 votes Thank Flag Link Mon Jul 5, 2010
"it is in fact permissible in the eyes of this agent (and I dare say many others as well since no one will call this agent out for this clear misrepresentation)."

That's the problem, if we all stand by and watch this behavior without doing anything it seems to me that we are just as culpable.

And not that it is much better, but it IS possible that the agent was ignorant, not unethical.
0 votes Thank Flag Link Mon Jul 5, 2010
Sorry Joan...I just call 'em as I see 'em. And since Kip has now seen first hand that an agent's marketing is in fact being less than truthful and this agent will receive no reprimand for being untruthful, it is in fact permissible in the eyes of this agent (and I dare say many others as well since no one will call this agent out for this clear misrepresentation).

I agree with you Joan, but let us not pretend that all others adhere to your standards and mine. You and I don't find this behavior permissible, but clearly others do. I must continue to stand by my prior statement as a warning to Kip and others who may place a little too much trust in those who certainly don't deserve it.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Mon Jul 5, 2010
Ouch Guy,
Does stretching the truth or lying exist in this business?
Obviously. There's not a business that exists that doesn't have its truth stretchers and liars.
Is it permissible in order to meet the goal of selling a house?
Never, not for ANY reason. Ever.
0 votes Thank Flag Link Mon Jul 5, 2010
The previous answers are correct. There's no relationship between the assessed value of a property (the value used by a county on which to base taxes) and the fair market value (which represents the price at which a property would actually sell--generally determinable in advance by an appraisal or a CMA).

It's one thing to promote a property by saying: "100,000 below tax assessment!" It's another thing to claim--incorrectly--that the tax assessment is related to fair market value.

Hope that helps.
0 votes Thank Flag Link Mon Jul 5, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Tax value should not be confused with Fair Market Value....they seldom have any relationship. I agree with you about the marketing being dishonest. But then again, welcome to the world of real estate where stretching the truth (or even telling lies) is considered permissible as long as the objective (selling a home) is met.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Sun Jul 4, 2010
The tax assessment is worthless when trying to determine fair market value. Often that assessment is a few years old. Even if it was correct when done in 2006 it would not be correct today.

Some places do not use 100% market value for assessed value. That also can cause some problems trying to make it fair market value.
0 votes Thank Flag Link Sun Jul 4, 2010
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