In Grand Rapids, does the assesed value of a home usually catch up to recent sale price?

Asked by Mike H., Grand Rapids, MI Sun Aug 24, 2008

I ask this question as I am researching new home sale prices in the City of Grand Rapids, and am trying to gague if the listing price is a fair one relative to the assessed value.

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Alan Lacey, , Grand Rapids, MI
Wed Aug 27, 2008
It is not a very accurate measure to be honest.

Some houses sell well below the taxable value if they are shortsales or foreclosures. Grand Rapids like many cities is not going to reduce taxable value because a home was sold under duress they do not consider it a fair market value, although they will be hard pressed to keep that argument up since over 40% of all sales in the city are foreclosures or shortsales.

The obivous answer is that the only way to determine fair value is a appraisal, but if you want to do a little investigating first use out of all the online home valuation tools they seem to have the most accurate.
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Michelle Gor…, Agent, Ada, MI
Sun Aug 24, 2008
Hi Mike, The City of Grand Rapids just re-assesed the homes. If you go to access kent and look up the home in question, my guess is that it has been dropped in value a bit. Although it is nice to know what the assesed value is, I do not use it much for a purchase price. Compairable sold prices in the last 6 months are the best way to tell if your home is worth.
East Hills is all over the place! Some really low prices and some higher priced homes (if they are really fixed up) I just sold on there..........listed for 69,000 and the assesed value was 60,000 - good condition too....banked owned!
I think in this market place you need to go case-by-case............I hope in the future, when our market returns to a "regular" market, assesed values will be more in play in deciding a value of a home. but right now............compairables (sold homes in the last 6 months) I feel is the best way.
Good luck in your home purcahse!
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smith3gary, Agent, White Lake, MI
Sun Aug 24, 2008
Mike, you are correct, there is a correlation of a homes actual sale price to the assessed value of a home. I'm not sure about Grand Rapids, but in southeastern Michigan the values were usually between 1.8 to 2.25 times the SEV. This has decreased quite a bit with the glut of foreclosures and "short sales' in my area. The new values are quite startling.

A local real estate agent would be able to pull information from public records to give you the range for East Hills. Keep in mind, this is a general range. There are always homes with desireable floorplans, locations, and condition that will have a higher ratio. If your area is in a declining market, the Taxable Value will reach the SEV within a few years, depending upon when you purchased.
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