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pharm83, Home Owner in Naples, FL

if the fair market value is calculated by dividing thr proprty 's total assesed value by the average assesment ratio. What is the ratio ?

Asked by pharm83, Naples, FL Fri Aug 24, 2012

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Carl Ben Witzig’s answer
The ratio you ask about must be the result of dividing tax assessment by actual sales prices of similar houses in a recent period. 10 houses assessed for a total of 1,000,000 were sold at a total of 900,000. The ratio is 90%. It helps answer the question of how accurate is the tax assessment? And it is a suggested answer, knowing nothing else about a house, as to its approximate value. Change the estimate for better than average amenities and updates, or worse than average condition. Using the "whatever the seller and buyer agree on" as an answer misses the part of what an appraisal may be for loan purposes. Except for a cash buyer, the appraisal will be an important number, based on recent sales of simiiar and nearby. In this recession, lenders' underwriters are conservative based on appraisers being conservative. On top of that, buyers are conservative and sellers reluctant. But.... if you need a house, want a house and can buy a house, now is is great time because how low can the rates go? Under 3% for a 15 year mortgage loan is almost free money. Five years from now, many folks will be kicking themselves for not buying when they could have. But maybe they did not need a house, or want a house, or could not buy a house.... it is not easy to get a loan with less than stellar credit, at least at these super rates.
Carl Ben Witzig
Weicheert, Realtors
Upper Montclair
1 vote Thank Flag Link Wed Oct 10, 2012
In NJ
Fair market value?
Is what buyers are willing to pay.
Assesment value is what the the town value your property so they can equally tax property owners.
the 2 are unrelated.
some people come up with the avg difference between the fair market value and the assesed value but it is meaningless when prices are increasing or decreasing.
Appraisers do not even use assesed value
1 vote Thank Flag Link Fri Aug 24, 2012
The ratio is calculated by dividing the property's total assessed value by the current property tax.
0 votes Thank Flag Link Wed Oct 10, 2012
no the fair market value is what a will and ABLE buyer is going to pay .. you can get an avergae for that with a proper cma .
0 votes Thank Flag Link Sat Aug 25, 2012
Andrew answered part of your question. The city or town can provide you with the tax ratio where the property is located. Each town or city differ.

Call the tax assesors office they can provide you with the tax rate and ratio.
0 votes Thank Flag Link Fri Aug 24, 2012
There is no string attached to the two;
computed completely differently.

Assessed value has nothing to do with buying and seeling a house.
0 votes Thank Flag Link Fri Aug 24, 2012
Andrew answered the question well. Assessed values can be all over the place. Even on the same streets, values can vary widely on basically equivalent properties. This often happens when house A has sucessfully appealed their taxes for a lower assessment and house B has not bothered or does not realize they can or should.

Bill Eborn
Century 21 Gemini
973-698-7750
0 votes Thank Flag Link Fri Aug 24, 2012
Fair Market Value is not even what the market will pay, it is what the house will appraise at. If the comparable sales do not support that price, it's above FMV. The only time this is going to be different is with an all-cash buyer or a buyer who is willing (and possibly foolish?) to bring cash to the closing table to pay a price above market value.
0 votes Thank Flag Link Fri Aug 24, 2012
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