Property Q&A in 53005>Question Details

Kip, Home Buyer in Brookfield, WI

I noticed a re-listing that touted that the property was priced $61K below "fair market value (FMV)." This is exactly the county appraised

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

value. It's not coincidental that the house is exactly priced at $61K below the Waukesha County appraised value. It seems misleading and disingenuous to use the term "fair market value" when describing the County's assessed value for tax purposes. Is it?

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As for fair market value, the term cannot be found in the tax bill shown on the Waukesha County website. Where is it found?
0 votes Thank Flag Link Mon Jul 5, 2010
The assessment generated by municipalities is what the assessor or appraiser felt the property was worth the year the assessment was done. It is used to distribute tax burden amongst residents within that property taxing district. The FMV listed on tax bills is generated by the department of revenue based on transfer tax returns from actual sales during the year. The state uses it to determine shared revenue. If a municipality does not reassess for a number of years, they would get to few or to many state dollars depending on whether prices are going up or down. Also, even though the department of revenue breaks sales into 7 or 8 categories, the actual multiplier used to generate FMV is often a blended number. Both the assessment and FMV do a reasonable job telling you whether one property is worth more or less than another, the margin of error is usually greater than a broker's opinion or appraiser. Condition of property causes the greatest error. You will often find properties in outstanding condition exceeding FMV and property in poor condition well below. Since many municipalities use mass appraisals, you find the occasional error in data entry. Garbage in, garbage out. There is nothing wrong with agents using statements of facts, when promoting their listings.
0 votes Thank Flag Link Sun Jul 4, 2010
If they are quoting what the tax record lists as "fair market value" they are simply stating a fact. This value appears on your property tax bill with that header. Does not mean it is the true open market "fair market value" but again, it is listed as such on the tax bill...
0 votes Thank Flag Link Sun Jul 4, 2010
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