Is a lowered assessed value good?

Asked by Hev Jones, Urbana, IL Fri Sep 19, 2008

I bought a condo in a college town two years ago and the assessed value was 64000. Now, I get a letter from the Board of Review stating that my new assessed value is now 38000. Is this good? I know i'll be paying less tax but does this mean my property value just dropped more? thanks -md

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Mark Waldhoff, Agent, Champaign, IL
Mon Sep 22, 2008
Cameron is pretty much right on. I would love for my homes assessed value to be as low as possible to keep my real estate taxes low. Realtors should not be using the assessed value to determine the market value to it shouldn't have a direct impact on your actual sale price if you were to move.
It is interesting that your assessed value dropped that much in Urbana as our local market has held up very well in the past 2-3 years. There is one development in particular in North Urbana that has had a very rough time and we've seen the values fall pretty quickly.
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Cameron Piper, Agent, Forest Lake, MN
Fri Sep 19, 2008

In theory your property value has dropped but tax assessors (love them as people) are notoriously wrong in their estimations of market value. The down side to their job is they are asked to take an exceptionally dynamic marketplace and boil it down into a linear formula. The problem is that that just doesn't work. There will always be expceptions and in something as dynamic as real estate they will be more common than not. The good news is that your taxes are lower in the short term. Keep in mind that you haven't lost any money until you actually sell. If you are staying put for a while, you're fine.

Cameron Piper
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