I have heard that sellling prices on homes in my area are selling for 25% less than assessed value. Is this true? Plattsburgh, NY

Asked by Sweet78, Plattsburgh, NY Fri Jun 17, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Don Tepper, Agent, Burke, VA
Fri Jun 17, 2011
Probably yes.

Assessed value has little relationship to a property's real value. Assessments are part of the taxation/revenue generating process and have (almost) nothing to do with buying or selling real estate.

Keep in mind, also, that assessments are almost always out of date. A typical scenario: The assessor looks at sales and property trends during the last six months of a year. Let's say July-December 2010. The assessments are mailed out and become "official" January 1, 2011. You as a buyer look at a house in November 2011. The assessment on that house--in November 2011--is based on sales dating as far back as July 2010. Even if the assessment was 100% accurate at the time (which it wasn't), it'd be worthless 16 months later.

As a home buyer, you should never base an offer on a property's assessment. Never.

Hope that helps.
0 votes
Kathy Madore, Agent, Plattsburgh, NY
Fri Jun 17, 2011
I live in the Plattsburgh area and homes are selling for close to assessed value or less depending on the condition of the home. The days of being able to sell your home for twice the assessed value are gone. If the home is in bad condition 25% and even less than assessed value is probably correct. It also depends on the price point of the homes.

In our area higher priced homes are not moving as well as the $150,000 and under homes, causing them to sell below assessed values. An overpriced home may also contribute to getting less than assessed value, if it gets market dated. More often than not, homes will sell for less than assessed value in today's market in our area.

An agent can help you determine what homes have sold for in your area and can compare those sales to assessments. Good luck with your home buying.
0 votes
Marita Topmi…, Agent, Indianapolis, IN
Fri Jun 17, 2011
Sweet78,

Anna is right on the button. The same is true in the Indianapolis, Indiana
area, as I imagine it is everywhere.

Assessors can not continually re-assess every property. Even if they could adjust assessed values
based upon sales prices, some properties will always sell under market and others will always sell
above market based upon the type of finish, site, condition, etc.

To get a fair value, speak to a local Realtor.

Thx,

Marita Topmiller
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Jun 17, 2011
Generally assessed value has no bearing on market value; assessed value is the valuation placed on the property for tax purposes; market value can and should be defined as the price at which both buyers and sellers are willing to enter into a contractual relationship --therefore if looking to buy review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests as to a fair offer....
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Plattsburgh Zip Codes

Email me when…

Learn more