Hi, I'm looking to buy a house in Freehold/Manalapan area. A house I'm interested in, is asking 499,900.

Asked by Sandy, Buffalo, NY Sat Apr 25, 2009

However, when I looked up the house under the tax records/property detail the house was assessed for 422,000. What is my negotiating power with this info. and how does this affect getting a mortgage when the asking price is more than the assessed value of the home.

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Amber Noble…, Agent, Morganville, NJ
Sat Apr 25, 2009
Good morning Sandy!

You asked a great question that many buyers like yourself are also curious about.

In many counties in New Jersey, a home's "tax assessed value" is not necessarily a home's "fair market value."

Tax assessments are based on a formula each local town or municipality uses to determine the amount of property tax a homeowner has to pay.

Fair market value is the price a home is worth based on what prices similar homes have sold for recently in a given area.

A few additional factors that figure into a home's "fair market value" are the level of demand for a particular home, the number of buyers interested in purchasing a particular home and the amount the buyers are willing to pay for the home.

If you send me details for the home you are specifically interested in I can better advise you regarding taxes. As Realtor who specializes in the Freehold and Manalapan areas, I can give you a more precise professional opinion regarding that home.

If you are not already working with a Realtor I would love to be of assistance to you with your home search.

Best wishes,

Waterfront Home Expert & Short Sale Specialist
Weichert, Realtors (Marlboro~ Manalapan office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office


"Your Reliable Resource For Monmouth County Real Estate, Local Info & More"
1 vote
MICHELLE TAW…, Agent, Rumson, NJ
Thu Oct 8, 2009
Every town is assesed differently assesed value is for the town tax purpose. I can do a search and see if house are going for assed value or if they are above or below asseesed value
0 votes
Deborah Ross, Agent, Morganville, NJ
Mon Sep 7, 2009
The answers already listed are very accurate ... Your focus should be on recent sales of comparable properties in the neighborhood, rather than on assessed value. Because assessed value determines the amount of tax a homeowner will pay on the property, very few home owners will ask that their property be assessed at a higher rate; usually, homeowners try to get their assessments down, not up. A lower assessed value will not impact your ability to get a mortgage, if the comparative market analysis (CMA) shows a fair market value that is in line with the asking price. Your lender will send out an appraiser, to ensure that the price is in line.

Your agent can do a CMA for you. If you don't already have an agent, it costs you nothing as a buyer to have one ... I would be happy to help. I have properties in Manalapan and the surrounding communities and know the area well. Just call or e-mail me, if you need the help.

Wishing you success in your search!

Debbie Ross
0 votes
Francesca Pa…, Agent, Manasquan, NJ
Sat Apr 25, 2009

Oh, the tax assessment question is ever so popular these day! I must concur (although I have not read them all in full) with the previous responders in that the assessment is less valuable than a "current market value assesement" that can be provided, argued and/or negoatiated with a bank/township assessor by a Realtor (and not websites as they can be grossly inaccurate).

And so you might be thinking, oh, these realtors just want my business, But one must consider the followng:

(1) Companies hired by towns to do these assessments do their best to "get into homes", but are not 100% successful; therefore, a home within which an evaluator is unable to enter is then assessed based on the value of other comparable homes (usually in planned communitiies or those with common builders).

(2) I have heard of MULTIPLE horror stories about these evaluators looking at formica countertops made to look like granite and assuming they are granite or partially finished basement as being considered fully finished basements.

(3) If the last assessment is is over 5 years old, it holds little ground as the homeowner may have added oodles of upgrades to make the assessment "out-of-date", and market conditions within that time period may have increased it's vaue (minus the recent downturn and only a LOCAL EXPERT can advise you property. Remember, we here in NJ are not as affected by the market downturn as the sates of Cal, FL or Airzona.

Having said that, truly, honestly, u need the expertise of a LOCAL representative that will advocate in your best interesst. I recently negotiated a $1M property down to $850K on the basis of future value. So, therefore, If you would like an honest analysis and are not currently represented by a realtor, feel free to to email me with additional detais and I will be happy to let you know where you stand.

Love and Peace,
Francesca, Realtor, ePro
Web Reference:  http://www.PatrizioRE.com
0 votes
Heather Dacc…, , Monmouth County, NJ
Sat Apr 25, 2009
Hi Sandy,
The best way to arrive at your offer is to have a real estate agent provide you with a CMA (Comparative Market Analysis). The tax assessment and asking price do not always correlate. Your mortgage company will send out an appraiser to determine market value therefore the assessed value of the home will have no impact upon your mortgage.

Let me know if you have any additional questions.

Heather Daccurso
Weichert Realtors
Email: heather@heatherdaccurso.com
0 votes
Michael Rayno, Agent, Cape May, NJ
Sat Apr 25, 2009
There is no direct connection between assessed value & asking price. What you want to do is have your agent run comparables sales in the last 6 months. That will be closer to the true value of the house.
Godd luck in your search
Mike Rayno
Prudential Fox & Roach Realtors
0 votes
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