The condo I am purchasing was assessed at between-235,000-297,000-I am paying 288,000 the asking price was 295,000. am I paying too much?

Asked by Jeanne, Jamaica Plain, Boston, MA Wed May 12, 2010

I know location factors into sellers price what else determines price?

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Jeff Persons’ answer
Jeff Persons, , Boston, MA
Thu Jul 15, 2010
Tax assessments and asking prices are meaningless when it comes to valuing a property. The tax people have their own universe and as Realtors we are told to ignore this number. Also the asking price has all the veracity as a wild guess.
What you need is an Accredited Buyers Agent to do a comparative market analysis to determine what the property is REALLY worth. That is the only number that means anything really. Ask him to give you a UNEDITED list of similar properties sold in the last 6 to 12 months. Take an average of those and now you have a number that you can hang your hat on. This will keep you from overpaying. Just refuse to go above this number that represents fair market value. Personal opinion and greed influence the asking and who knows what the tax people are doing.
Hope this helps, Jeff Persons, RE/MAX Destiny Accredited Buyers Agent - http://wesellboston.net/
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed May 12, 2010
Keep in mind that assessed value has no bearing on market value--you need to be aware of recently sold similar units in the immediate area--review the data and make a determination as to a fair offer. What is your agent advising, he/she is best source of information.
1 vote
Ron Danklefs, Agent, Jamaica Plain, MA
Thu Jul 10, 2014
The only way to know if you are overpaying is to ascertain the current value of the property, which can only be arrived at by looking at what similar properties in the immediate area have sold for in the past six months or so. This is more involved than looking at the MLS though; you would need to have a professional evaluate the other properties that have sold and compare them (to the best of their ability) to the one you are interested in. This is as much as an art as a science, however it is a very valuable art! A good Buyer's agent can save a buyer many thousands of dollars both by providing evidence culled from other sales with the initial offer justifying whatever price is being offered, and by (sometimes, not always) negotiating even further after the inspection using their experience with many transactions and the evidence provided on the inspection report.
0 votes
Celdra M. Al…, Agent, Boston, MA
Wed Jun 23, 2010
Hi Jeanne,,
the assessed value is not the same as the market value. If other units in the area that of the same size and condition have sold for $295,000 then you are not paying to much. Make sure your agent is analyzing the most current data before you make your offer.
Good luck,
Celdra
0 votes
Tim Cahill, , Arlington, MA
Wed May 19, 2010
Hard to say if you're paying too much without actually seeing it AND the neighborhood. Remember the first cardinal rule in real estate - location, location, location. Next biggest factor? Condition of the house and any extras that make it different from surrounding properties. The ultimate factor, however, in determining price is the real estate market itself. People and things don't set the asking/offer price, only the "market" itself sets the price. Lots of factors go into the market equation - ex. local unemployment rate, price stability of consumer goods, economic outlook for region, number and quality of other homes on the market at the same time, etc.

If you have an accepted offer and/or a signed P&S, there's really nothing you can do to change your price other than back out of the offer and possibly lose your deposit, unless you have an escape clause for either the home inspection or financing contingency. However, you're definitely in the ballpark with your offer of $288k and you just need to decide whether or not you love the home enough to complete the deal.

Best of luck! -Tim
0 votes
William Patt…, Agent, Boston, MA
Sat May 15, 2010
Hi Jeanne,
As a rule, I do not look at tax assessments as actual value for any property. Each town has their own way of assessing value and rarely does their number match what the place will sell for on the open market.

Cheers,
Bill P.
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