When buying a home, is it normal to pay more than the assessment value? For example, I was looking at a home

Asked by Swhite, Maryland Thu Apr 10, 2008

priced at $298,000 but its total assessment value was $189,000. I'm not sure how to use this information when determining an offer price. Any advice?

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7
Jt Martin, Other Pro, Greenville, SC
Fri Apr 11, 2008
you need to comp your value go to my website, click "find home value' on the menu bar, then put in the property address, it will email you recent sales, your rpice should be inline with the comps, if not your over paying
Web Reference:  http://www.redealsusa.com
0 votes
Swhite, Home Buyer, Maryland
Thu Apr 10, 2008
Thank you for your answers! They're very helpful.
0 votes
Kandis Thomp…, , Brighton, MI
Thu Apr 10, 2008
It's not unusual to pay more than the assessed value - however, that's quite a spread. I would recommend that you have your realtor prepare a CMA on the property (Current Market Analysis) to determine what price the market is bearing for the home you're considering.
0 votes
Missy Caulk, Agent, Saline, MI
Thu Apr 10, 2008
Don't use either in making an offer, use the comps in the neighborhood and the active listings. They are out of wack in Michigan.
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Joe, Home Buyer, Jenkintown, PA
Thu Apr 10, 2008
The assessment is done for tax purposes, and is not the same as the appraised value. Your offer should be contingent upon the appraised value.
0 votes
Lisa Bender, , Howell, MI
Thu Apr 10, 2008
A Realtor when doing a market anaylsis to determine correct pricing for a home will look at what similar homes in the area have SOLD for to determine a listing price. With that being said, it really is what a willing and able buyer is willing to pay for a home. Assessed values are not good indications of the value of a home's worth. If the home was purchased 25 years it's very posible that value is low. Now, considering values have dropped in many areas, it's possible that value is high.

Hire a qualified buyers agent to determine what homes are selling for in that area and use that information when/if you decide to make an offer.

If you'd like a few names of excellent Realtors in your area click on this link: http://www.clickthishome.com and then on "Contact Us".
Web Reference:  http://www.ClickThisHome.com
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Michelle Gor…, Agent, East Grand Rapids, MI
Thu Apr 10, 2008
I wonder if you mean the SEV? They are 2 different things. Assessment value or SEV (state equalized value) Is what your property taxes are based on. Many years ago, people would double this amount to come up with a sales price. However in this market this is NOT a good evaluation. You need your buyers agent to run comps in the area to see what like homes are selling for in the area. If infact you are refering to appraised value............this is as good as comps in the area.
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