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I've been taking a look at Monster.com Homeprice check and had a question about the fields. The fields in question are: Assessed Value, Sale Price, and Sale Date.

If I'm reading this correct, Assessed Value shows what a home inspector estimated the value at, and Save Price is what the house actually sold at. Is this correct? If so, houses in the DC area would be selling for $60,0000 OVER the assessed value!

I'd appreciate any clarification.

Thanks,
Tom
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I've been taking a look at Monster.com Homeprice check and had a question about the fields. The fields in question are: Assessed Value, Sale Price, and Sale Date.

If I'm reading this correct, Assessed Value shows what a home inspector estimated the value at, and Save Price is what the house actually sold at. Is this correct? If so, houses in the DC area would be selling for $60,0000 OVER the assessed value!

I'd appreciate any clarification.

Thanks,
Tom


Assessed value is what they use to determine your property tax. It's not the actual value of the home. I'm not sure how they come up with the number though.

-Steph
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Hi Tom,
Can't speak to Monster's intended menaings... BUT "assessed value" usually refers to what the local jurisdiction values a property for their taxation calculation purposes.

If this is what Monster's using, it would be about as useful as teets on a bull...

Assesment's range wildly between jurisdictions (and sometimes WITHIN jurisdictions.)

Much of the West coast assesses at 10% to 20% UNDER fair market value.
NY assesses around 5% to 10% OF FMV (yes, you read correctly!)

In between coasts I've seen the gamut from slightly under FMV (the majority) to slightly above.

IF that's what Monster is reporting, it's serves a purpose (perhaps) for tax planning (IF you know what the tax rates are relative to the assessments,) otherwise what they REALLY ought to be reporting, IMO, is average recent comp values.

Cheers,
Dave
Mortgage Fool
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connellyt: "I've been taking a look at Monster.com Homeprice check and had a question about the fields. The fields in question are: Assessed Value, Sale Price, and Sale Date.

If I'm reading this correct, Assessed Value shows what a home inspector estimated the value at, and Save Price is what the house actually sold at. Is this correct? If so, houses in the DC area would be selling for $60,0000 OVER the assessed value!

I'd appreciate any clarification."


I am not particularly familiar with either moster.com or the DC market and laws, BUT "assessed value" usually means as assessed for ad valorem tax purposes (i.e. real estate taxes), and that value would depend upon the accuracy of the local assessor's office and local law.

Some jurisdictions only re-assess every x number of years. If DC is a once every 2 or 3 years assessment area and the market has been moving up, the assessed values would trail market value.

In some jurisdictions, assessed value is supposed to be x% of market, where x is 95%, 80% or even 50%; it all depends upon local law.

In addition, you need to know when the assessed value is as of. In Texas, assessed value is supposed to be as of 1/1, so someone looking at assessed value today (in August), would be behind a rising market, even if the property was reassessed accurately as of 1/1.

Last, many assessors do not have access to the interior of the houses, so have only streetscape (visual appearance) and public data from building permits (which can be inaccurate) and recent sales from which to run comps. As a result, the margin for error is larger than an appraiser who is more familiar with all the comps used (including having seen the interior).

I would take assessed value with an even bigger grain of salt than a realtor's comparative market analysis, and would oth with more salt than a real appraisal (detailed version, as opposed to summary version).

Regards, JAFO



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PS - I forgot to mention that some states have caps on assessed value of homesteads, which might place them in no direct relationship to market value.

California has Proposition 13; Texas has law that limits assessesd value for homestead from increasing more than 10% per year (which can make assessed value much lower than market value if the market has been rising for several years.

JAFO
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I would take assessed value with an even bigger grain of salt than a realtor's comparative market analysis, and would both with more salt than a real appraisal (detailed version, as opposed to summary version).

If that's the case with the CMA, when I get a real appraisal, should I get one separate from the mortgage broker/loan company, and do I have to ask for a detailed appraisal, or is it automatically done?

Thanks,
Tom

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Hi Tom,

If that's the case with the CMA, when I get a real appraisal, should I get one separate from the mortgage broker/loan company, and do I have to ask for a detailed appraisal, or is it automatically done?

An appraisal by an independent, certified professional appraiser will run you $250-$400 for a typical SFR. If you REALLY want one done in your own name you can always get one. Otherwise... if you just want a good & realistic value analysis, and if you have a good loan broker, they can call a local appraiser and ask for a general value quote. The appraiser will usually give a fairly market-qualified answer, albeit unsupported with research and documentation (which is what you pay for when the real appraisal occurs.)

You'll eventually pay for the appraisal, as required, when you're getting your file together for underwriting the mortgage.

Cheers,
Dave Donhoff
Foolish Mortgage Broker
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Hi Tom,

In Maryland, the state recently changed the method for our "assessment" system.

We used to be at 40 - 60 % of appraised value. That is - an assessor visits your property - usually on foot every 3 years. They do their work outside and usually do not ask to come inside.

If you transer property, build an addition, maybe even re-fi, they re-do your numbers.

As of 7/2001, Maryland is a full "appraised" value state.

My house went from 38K to 105K on the records. The tax rate was adjusted to keep the yearly taxes at close to previous level, but the records now show the full value.

If you ID a property in Maryland, you can use the tax dept's web site to check out what they say the appraised / assessed vaule is.

You need the county and street name to make it work. A friend of mine recently sold and bought in Montgomery co. According to the records for each property, he sold for 2x what the value is and bought for 2x what the property value is listed.

www.dat.state.md.us

Have fun!
jdb
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This is how the providers of the home price data on Monster.com, Domania.com, define assessed value (from http://www.domania.com/using/homeprice.jsp):

Q: What is assessed value?
A: The assessed value is what your taxing authority (your county, city or town) uses to determine how much tax is due. In some cases, the assessed value might be the same as market value, but typically it is a percentage, called the assessment ratio.

Inpho
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