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Mark, Other/Just Looking in Bloomfield, NJ


Asked by Mark, Bloomfield, NJ Sat Mar 31, 2012


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There is no true set ratio. Market Value changes all the time, it's a reflection of what a ready, willing and able buyer decides their willing to pay for a property. Tax (or assessed value) is a point in time valuation and has absolutely no bearing whatsoever on market value. Most states require that properties be re-assessed every 4-8 years. (Each state is different, however as the assessment process is an expensive one, and so many states are suffering with budgetary restraints most will take as long a time in-between reassessments as possible). Most but not all, mandate that assessed value be 100% market value. While this sounds good, the problem is it's set for that year and then the market moves on and can go up or down.

It is important to understand there are three values to any property.
The most of important of which (for most people) is Market Value.

Market Value is what a ready willing and able Buyer (who is competent to enter into a binding contract) will pay for your property. This can be determined by a good local Realtor when they prepare a market analysis for you. You should let whomever you are speaking with your time frame for getting it sold. It’s a simple matter of supply and demand. A balanced market is 6 months worth of supply. Above that and it’s a Buyer’s market, below that a Sellers market. Depending on your motivation as a Seller you should price accordingly.

Appraised Value is what a licensed Appraiser feels the property is worth, this is the number a lender will use when a Buyer is looking for a mortgage. Appraised and Market values should be very close and ideally are identical.

Lastly there is Assessed or Tax Value. This is only important in terms of what a property owner will pay in property taxes. This number only rarely coincides with actual Market Value for the simple reason that they are a “point in time” number. Tax assessments are typically done every 4-8 years depending on where you live. Some States Like North Carolina mandate tax values to be 100% of market value, other do not. Regardless of what is mandated, the value assigned by the tax assessor are really only good the moment their done and remain static until the next assessment. The market however is constantly changing both up and down, which is why looking at a tax value doesn’t give a buyer any more information on the real market value of a property, all it tells them is how much they will pay in property taxes.

For more information about Assessed versus Market Value, you may wish to read a blog I posted here on Trulia about a year ago. I've attached the link below.
1 vote Thank Flag Link Sun Apr 1, 2012

As others have explained assessment value and market value are different. Assessed value is the valuation placed on property by a public tax assessor for purposes of property tax. Its used to determine taxable value only. Market value is not the same thing nor does it have any bearing on assessed value. Market what the house is worth today and what a buyer is willing to pay and what a seller is willing to accept for a property.

With that being said, I can provide you with the assessed value of the homes that recently sold in Bloomfield, along with their sales price. I'm very familiar with Bloomfield and have listed and sold homes in Bloomfield. Feel free to send me an email or call me.

Gina Chirico, Sales Associate
Lattimer Realty
973-575-6353 ext 17 office
973-715-1158 cell
0 votes Thank Flag Link Sun Apr 1, 2012
easy - ask an agent to supply that information.

I don't think trulia supplies tax information...........or full assessments and how they break down as to land vs building values.

If you email me, I can take a quick look and see what selling prices look like as compared to assessments........for the towns in Essex County that were reassessed in just the last year or so...many sales prices are reflected in the assessed value........some are not..
0 votes Thank Flag Link Sun Apr 1, 2012
NJ tax records| or simply call Bloomfield,NJ Tax Assessor.
Market Value is another subject.
Special Note: a home is only worth as much someone is willing to pay for it.
0 votes Thank Flag Link Sun Apr 1, 2012
I agree that there is not necessarily a linear relationship between township assessed value and market value, however, you can see parallels in the ratio among similar properties in a given neighborhood. Generally, assessments are meant to be neighborhood centric and within some counties in NJ they are trying very hard to be as current and close to market value as possible. Somerset County is an example of one such county.

In working with buyers - and advising sellers - I make them aware of the relationship between the two and how it may come into the conversation. As often as not, just when you think you see a clear picture of the relationship, the exception will break the mold. That is when I recommend applying the reasonableness test.

Talk to an agent that specializes in Essex county, and more specifically in the Bloomfield area - if you need a suggestion, I can help you.

Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Sun Apr 1, 2012
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