What is today's relationship between actual selling price vs. assessed value in the South End, 2 bdrm condo market?

Asked by bmann, Boston, MA Tue Mar 27, 2012

I believe I am seeing a narrowing between the assessed price and selling prices. Is this a trend?
Thank you

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Bobby Woofter, Agent, Boston, MA
Tue Mar 27, 2012
The 2 numbers are used for different purposes and really run independently of one another. The assessed price is the basis the city uses to tax the unit. Many years can pass between assessments and the number can be wildly out of touch with the market price. The market price is clearly what someone is willing to pay for it. If the two numbers are trending towards one another it might indicate a higher turnover as a property is assessed when it changes hands.


Bobby Woofter
bobby@mybostoncondo.com
717-917-8842
Web Reference:  http://mybostoncondo.com
2 votes
David Laven, Agent, Boston, MA
Mon Nov 12, 2012
Best place to find this answer is here...> http://massachusettshousingprices.com
1 vote
Nice try. Its a site owned by David Laven, the answerer above. (disclosure?) And yet another place to get your email, phone, and name on another junk list.
I would contact a local real estate professional to help with this answer and to save time and money.
(I'm on the Cape, but I can help you choose a local pro from our Boston Office on Newbury Street if you want help doing so.)

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.
Also, while I have been a VIP+ - over 1750 questions answered, over 250 Thumbs up and best answers combined - I do not try to mantain VIP status anymore.
Maintaining VIP is status on this site does not privide benefits to professionals and it is even numbered backwards.)

http://www.robertpaul.com/agents/4799-Heath-Holly-Coker
Flag Sat Mar 29, 2014
Kevin Vitali, Agent, Tewksbury, MA
Tue Apr 8, 2014
Yes in general it will be a trend. When the real estate markets trend up or down so will assessed value to a certain point. But do not confuse assessed value with the fair market value of your home. The two values have different purposes.
0 votes
Heath Coker, Agent, Falmouth, MA
Sat Mar 29, 2014
MA Assessors are only required to re-assess every 9 years, according to one conversation I had with a town assessor department head.
In Falmouth, they operate on a 3 year schedule.
However, they often only drive by, because in MA if you don't let them in, they can't assess what they can't see.

I would contact a local real estate professional to help with this answer and to save time and money.
(I'm on the Cape, but I can help you choose a local pro from our Boston Office on Newbury Street if you want help doing so.)

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.
Also, while I have been a VIP+ - over 1750 questions answered, over 250 Thumbs up and best answers combined - I do not try to mantain VIP status anymore.
Maintaining VIP is status on this site does not privide benefits to professionals and it is even numbered backwards.)

http://www.robertpaul.com/agents/4799-Heath-Holly-Coker
0 votes
James Furlong, Agent, Brookline, MA
Tue Mar 27, 2012
Yes, I do believe that (in general) the two values have been moving closer in recent years. This is due in part to a lower volume of sales and the city moving to keep values current. Unfortunately, we cannot use it as a guide in any one particular sale. Although the trend (in general) is true the particulars of each individual sale need to be analyzed on a one-on-one basis. The most important comparison is between the property under sale and those properties that have sold in the recent past. The period that could be considered "recent" has lengthened in recent years because of the lower volume of sales. The city's assessed value is the result of an automated value analysis where the value of a property that you might wish to buy should be determined in a very personal but objective manner. This is where the value of using an experienced real estate agent comes through. As always, we are here to assist you in any purchase or sale decision. You can reach us at jamesfurlong20@gmail.com or 617-620-0669.
0 votes
Kevin Vitali, Agent, Tewksbury, MA
Tue Mar 27, 2012
Assessed values and selling price are really two different things. Assessed values are used to meet a towns budget. There are properties in the same community that can sell for half of assessed value or twice as much as assessed value.

Ultimately assessed values are a poor way of determining a selling price for a home.

Here's a list of the last 33 properties that sold in Tewksbury. The sale price as a percent to assessed value.

82.8%
107.1%
93.7%
142.0%
99.0%
67.5%
67.0%
103.6%
170.9%
86.0%
96.5%
100.8%
101.6%
101.1%
99.6%
58.0%
89.7%
79.2%
101.0%
91.2%
81.5%
93.2%
86.5%
108.3%
92.6%
81.4%
85.4%
77.4%
66.5%

As you can see the range is too great to get an overall sense of actual selling price from the assessment.
0 votes
Jaime Fernan…, , 02472
Tue Mar 27, 2012
In general, assessed values are at least a year behind or as much as a particular community government can get to it. Also, assessed value represents the estimated value of a property made by that government appraiser. They do it for government budget purposes and tax levy. Those appraisers sometimes are government employees or they can be professional appraisers hire for a given assessment period effort.
The selling price is what a buyer and a seller agree and accept to transfer a property. If the property is seen as highly desirable it may have a selling price much higher than the assessed value. Or if there are many similar properties in the market their selling price could be closer to the assessed value.
By the way, appraiser in their work consider many factors to estimate a value and their appraisal may be different if it is for loan value determination for a bank, a government assessment for taxing purposes, or if it is for investment property valuation, etc.
Buyer’s needs most of the time are satisfied by having your Realtor perform a CMA (comparative market analysis) and design with you an strategy to make an offer, and possibly counter-offers, to purchase that property. In this case it would be your condo.
Good question and good luck acquiring your condo.
Regards,
Jaime Fernandez-de-Castro
0 votes
Michael Sylv…, Agent, Boston, MA
Tue Mar 27, 2012
That's a tricky question. The selling price doesn't correlate with the assessed value of properties. Typically condos and homes sell for above their assessed value, but properties also sell for below their assessed value.

The important figure is the Sale Price to List Price ratio. In 2012, the Average Sale to List Price in the South End is 98%. That means that condos are selling at 98% of Asking Price. That amount doesn't reflect price reductions, but 98% is a very healthy number, at least for sellers!
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more