Lisa:
I think Diane Eisner has given the clearest advice. The Assessment, is based on a percentage of what the Assessosr thinks the current market value is at the time they do the assessment; the Appraisal is what someone decides the value is, based on sales over the past 3 to 6 months and is used for Lending purposes; the Market Value is what a Buyer will actually pay for the property. So offer the $600k.
However, I would like to discuss with Diane, her statement; "The tax assessor uses the assessed value to determine the property's taxes.
IMO, this is an issue of relativity. The amount the Tax Assessor collects is dependent on what the voters have voted to spend on various programs. The purpose of the Assesssment Value is to make sure that the collection is equitabale. In other words, your assessment can increase considerably, but if the voters haven't voted for new expensive programs your taxes could actually drop, if there is a sufficient number of new properties available to tax.

Dottie,
It depends on when and what criteria the lastest assessment was made.

My town did an assessment on Market Value at the height of the Real Estate market. In our case, homes are selling at less than the assessment, now that the market has dropped.

Hi Lisa,

In the past market, the general rule was that the assessed value was lower than the market value. However, for many homeowners selling In this market that is not the case. I have seen more than a few homes that have been recently assessed or reassessed that are selling at or below assessment, otherwise they are sitting on the market overpriced, the listing expires, or is even withdrawn depending on the sellers motivation to sell, or not. Your best bet is to look at the last 3 months closed sales. In today's market the assessment doesn't mean much, only how much you will pay in taxes.

I hope this information is helpful to you.

NO way! Its a idea if your in the "BALL PARK" and that is it. We are in a declining market, and the Assessors are 2 years behind, you need to look at sold comps less than 6 months old in this market.

Appraised value, assessed value and market value are three different valuations. As you pointed out, the property was assessed in 2007; appraised in 2006 and is on the market in 2007-2008. All of the respective valuations are different. The tax assessor uses the assessed value to determine the property's taxes. Assessed value takes into consideration land value and improved value of the property. An appraiser determines the property's value based on square footage, year built, upgrades, etc. and recent comparable area sales prices to determine value. Market value is influenced by those factors plus current economic, financial and local market conditions. Ultimately, market value is determined by where the buyer and seller reach a "meeting of the minds." I would suggest contacting a local area real estate professional who will provide client level service which would include a comparative market analysis of this property for you.

NJ is trying to get their assesed valuation as close to the actual value however in most counties, you will find that the numbers never work. Unless the town within the county has just gone through a re-evaluation, the numbers more often will reflect a number less than the actual market value. I am not sure about Cape May or the specific town within but keep the following information in your head.

Christine;
"They were predicting the market to remain steady through the spring and real estate values to remain about the same. "

They are NOT predicting the values will stay the same. The market is in a downward trend that most economists believe will last for MANY years.

Tax assessments are about 86% of market valus. There was an article in last weeks paper that stated Cape May was to hold off on the scheduled reval of properties because the tax assesed value was close to market value. They were predicting the market to remain steady through the spring and real estate values to remain about the same.

As always, the market definition is whatever a Buyer is willing to pay. There are always people out there that cannot live with out that perfect home, so are willing to pay what the Seller is asking.

It is more than $417k so your interest may be higher than you think. You will probably need 20% down too.
Look up the area prices on the link and find out what that area sold for in 2000 then adjust it for inflation. You will not be able to buy it for that right now, but that is a good idea what its value will be in 2-3 years.

They may be looking for $500k now, but it is only worth way someone will pay. Don't fall in love with a house, there will be lots of other opportunities coming soon in that area.

Let me give you more info. about my question. The properties in Lower Township were just reassessed for tax purposes in 2007. This property was assessed at $700,000. It was appraised in 2006 before it was to be put on the market. This appraisal was $680,000. The house has been on the market for about 400 days now, originally at $750,00 and now down to $599,000. They said they would look at offers starting at $500,000. It is considered bayfront because it is across a small street from the bay w/ only dunes in front that can't be built upon. There are views from the entire front 2 levels of the house. I guess I'm trying to figure out if this is a good deal at this point.

No, especially in Cape May County. Most houses were assesssed in 2004-2005, at the peak of the biggest real estate Bubble in history. They are now coming back to the "normal" prices, meaning what it sould be worth if there wasn't a feeding frenzy spurred by bad loans. Your house is only worth what someone will pay TODAY. There are a lot less qualified buyers now, and will be for many many years.

Keep in mind that your tax rate probably dropped. Your house might have been assessed at $700k, but most people will actually see just a 25% increase in what they pay.