Krwfan, Home Buyer in San Diego, CA

Hi, Im a first time home buyer. Want to know should my offering price base on the assessed value of the property? since the listing price is higher.

Asked by Krwfan, San Diego, CA Thu May 3, 2012

Help the community by answering this question:


First of all, you need a Realtor working for you as a Buyer's Agent, if you don't already have one. He/she will explain the home buying process, offer strategy, etc. Assessed value should have nothing to do with what you offer. Your agent will want to do a "CMA" (comparative market analysis) on the property to see what similar homes have been selling for in recent months. Why not look at the assessed value? Because different states & counties calculate this differently. This is just for determining taxes, and sometimes their calculations are taken from 12-18 months ago! It is NOT an accurate picture of what a home should/would sell for under current market conditions. Things have changed a LOT from 18 months ago. Talk to your REALTOR!
1 vote Thank Flag Link Thu May 3, 2012
Your offer price should be based on recent sales of comparable properties. This could be higher or lower than the assessed value.

Sellers price homes in unusual ways sometimes - often starting with 'what they need to get' out of a sale. This often as little bearing on market value.

My best advice is to work with an agent, myself, or any other reputable agent, and have this person evaluate the home with you. This is what we do for a living and can help you make an informed decision.
0 votes Thank Flag Link Fri May 18, 2012
There are 2 main things (among many others) to consider:

1 - The sales price for other comparable homes within a few months.

2 - Is it a seller's or buyer's market. If the inventory is low, like it is now, you may see multiple offers on a property which would force the price up possibly over what the seller is asking. Consider the demand.

I hope this helps =)
0 votes Thank Flag Link Fri May 18, 2012
The assessed value is never the same as the market value, and it's lower than the market value.

Assessors don't know what's inside the house, for example, and there are so many properties for them to evaluate, that they can't really truly assess every property. In many cases, there are homesteads or other exemptions on the property too, reducing the assessed value, or the property were purchase a long time ago - not looked at again (or limited in assessment value growth by law, as is in FL). Principal residences and investment properties are taxed differently as well.

All in all, when buying, it's best to carefully look at the comparable values and the local value trend (unless there is a bidding war).

Irina Karan
CDPE - Certified Distressed Property Expert
Beachfront Realty, Inc.
0 votes Thank Flag Link Thu May 3, 2012
Thanks you so much everyone!! I got it. Found a good agent already :)
0 votes Thank Flag Link Thu May 3, 2012
All the answers you've received are correct. The bank will determine the value on an appraisal. Hire a good agent who can help you.

Call me
Jeannie Thompson
Coldwell Banker
La Jolla
DRE# 01021435
858 395 7727
0 votes Thank Flag Link Thu May 3, 2012

You are not an agent, so don't try to be one. Hire a professional, it doesn't cost you a dime because the seller or the bank is going to pay the buyer's agent commission.

Hector R. Gastelum
Realty Executives Dillon
REALTOR #01382940
efax 619-270-2516
0 votes Thank Flag Link Thu May 3, 2012
Hi There,

The assessed value was determined when the property changed title last time, so it could be several years ago, or had major permitted improvements, so it doesn't really have anything to do with the market value now. A real estate agent would be able to help you write a good - and strategic - offer. Some buyers think they'll get a better price if they don't use an agent, but really the listing agent just gets double the commission, and they already have a duty to the seller to get them as much money as they can. The opposite is true. If you have your own agent, a good one will help you get the property for the lowest price, and negotiate on your behalf throughout escrow, because it doesn't stop at the offer! The offer itself should take several things into consideration that you might not think about.

Contact me anytime, I'm happy to answer any other questions you might have. I'm here to help.

Warm Regards,

Cory La Scala, REALTOR
Independence Realty
0 votes Thank Flag Link Thu May 3, 2012
Good morning, you have the answer on the assessed value and the listing price is most likely based on the current market value and comparable properties in the area. If you don't have a REALTOR working for you, get one. They're free. When do you want to move in?

Glen S Etherington, Principal Broker, REALTOR
Web Reference:
0 votes Thank Flag Link Thu May 3, 2012
As pointed out below, the assessed price has no bearing at all on market value. Assessed price is based upon last purchase price, so if someone bought a long time ago the assessed value would be much lower than market price.

Find the best agent/broker in your area to help you.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Thu May 3, 2012
The assessed valued is based on the price that the owner paid for the home not its current value. Your agent should have prepared a comparative market analysis (CMA) for you to show what comparable homes are selling for in the area. This analysis will indicate the market value of the home that you are considering and your offer should be based on that figure.
If you are not currently working with a Realtor, you should be. There is no cost to you; your agent is paid by the seller. Your agent will search for homes that meet your needs and are in the price range that you are interested in.
I would be happy to help you find a home and determine what is the right amount to offer on a home that you like. There is a lot of paperwork involved in the purchase of a home and you need someone to represent your best interests.

I am never too busy for your referrals

Jerry Heard
Your Broker
The San Diego Property Shop
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
0 votes Thank Flag Link Thu May 3, 2012
Keep in mind that assessed value has no bearing on market price; in order to determine a fair offer review comps with your agent, recently sold similar properties in the immediate area, see what the data suggests and go from there...
0 votes Thank Flag Link Thu May 3, 2012

Good morning, that is a great question. If you are currently working with a Realtor, I would ask him or her to review comparables in the area you are interested in. By doing this you will get an idea of average marketing time of homes, what is competing with the property you like and what the most recent sales prices have been, you will be able to determine a fair value to offer. Many times what the assessor has is about a year or two old and is based on what sales had done at that time. Market values fluctuate often and what we are finding at the present moment is low inventory levels and a spike in buyer activity.

Best regards,

Baruch Rosenberg
Keller Williams Realty
0 votes Thank Flag Link Thu May 3, 2012
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