Comments on: Massachusetts Assessed Home Values Are Not The Same As Fair Market Value

By: Steve

Steve — Thu, 15 Mar 2012 11:39:43 +0000

Great article Bill! I know I am a little late posting, but wanted to provide more detail regarding the time lag in tax assessed valuations:

Fiscal years for Massachusetts municipalities run from July 1st to June 30th. Towns are charged with estimating fair and full cash value as of January 1. This is known as the “assessment date” – prior to the fiscal year.

For example, the assessment date for Fiscal Year 2012 is January 1, 2011. Therefore, an assessor will look at property sales from the calendar year 2010 to arrive at fiscal 2012 property assessed values. (Note : It appears that Bolton, MA uses sales from 2009 – 2010! see last two paragraphs–> http://www.townofbolton.com/pages/BoltonMA_Assessors/index)

If I was looking to buy a home today, I would rather use recent comp sales from the past 3-6 months vs 14-26 months [of past sales] determine by tax assessed values!

By: Bill Gassett

Bill Gassett — Wed, 27 Jul 2011 17:59:56 +0000

Donna thanks for your compliments on the article. There are quite a few who do not realize there is no correlation between assessed value and fair market value.

By: Donna Hamaker

Donna Hamaker — Wed, 27 Jul 2011 16:08:28 +0000

Bill – I stumbled upon this blogpost by way of a retweet from @memocircle. Absolutely terrific article and echos what we often see in the greater DC/Northern Virginia area and the misunderstanding that buyers and sellers have re assessed vs fair market values. I certainly picked up some pointers about how to explain this more easily to buyers/sellers. Thanks for sharing!

By: Bill Gassett

Bill Gassett — Thu, 21 Jul 2011 12:09:41 +0000

Claudia thanks for your compliments on the assessed value vs fair market value. It seems like this is one of the biggest misconceptions in Real Estate.

Marte – I see we are on the same page. It drives me nuts when a Realtor or buyer tries to used assessed values in their argument on why their offer is a good one.

Virginia – Wow I guess there is zero correlation in assessed vs market value in your market!

By: Claudia Tergis

Claudia Tergis — Wed, 20 Jul 2011 23:18:43 +0000

Hi Bill another great blog. You explain the difference between assessed value and market value very well and in a fashion that everyone can comprehend. This blog will be of great help and I’ll make sure to pass it along and retweet.

By: Marte Cliff

Marte Cliff — Wed, 20 Jul 2011 23:17:13 +0000

We got notice to expect the assessor around this year – for an exterior inspection only. That made me remember an argument I had with the (elected) assessor years ago – when he told me that the only thing that mattered was square footage – not the condition of the house, the finish work, etc.

In other words, a home with plywood counter tops would be valued just the same as one with marble.

Since square footage is their only criteria, I guess it doesn’t matter that they hire “assessors” to go out in the field evaluating homes when they have no real estate experience and no education. Almost anyone can run a tape measure.

Assessed values here can be anywhere – and have no bearing on market value.

By: Virginia Hepp

Virginia Hepp — Wed, 20 Jul 2011 22:24:41 +0000

Assessed value is SUCH a moot point here. We are in Clark County along with Las Vegas – very small assessor department, very large county. Some homes here have not been reassessed since the early 90s. Most have not been reassessed even after adding $ amenities such as pool, spa, RV parking.
Potential buyers ask what the current taxes are – I tell them that it does not matter to them – the property will be assessed based on the new sales price.

By: S Singh

S Singh — Wed, 23 Mar 2011 16:46:21 +0000

Interesting article. It clears up some of my misconceptions. Luckily I am a first time home buyer in this market who can afford a 20% down-payment. Yet it has been a painful process over last three months with no end in sight. I have been using the assessed value as my yard stick for appraisal in a metro Detroit suburb where assessments are done every year. The 6 month CMA averages do come close to the assessed value, but the range of sold price variation is also huge (foreclosure on one extreme and lots of upgrades on another extreme). I am getting to a point where it seems appraisal should come before inspection if I am serious about a home – way too many delusional sellers out there. I am not looking to low-ball anybody but get a home ‘at’ the fair market value. Yet as a buyer I have to gamble (with help of CMA from realtor) that an offer would come at or below appraisal – when I highly suspect the error band on this process. It sucks that I stand to lose $1000 (inspection+appraisal) every time my realtor (based on her fair assessment) convinces me to offer above what the lender’s appraiser may come back with. Which begs the question why are not appraisers – realtors and vise-versa and why are not every body apt and honest . Hmmm… just seems like a tough process.

By: Bill Gassett

Bill Gassett — Wed, 01 Dec 2010 21:13:18 +0000

D Chornovas – You have nothing to worry about as the assessed value and fair market value for homes rarely coincide.

By: D Chornovas

D Chornovas — Wed, 01 Dec 2010 21:06:17 +0000

This article was very helpful. Thank you for taking the time to educate us all on the difference between fair market value and assessed home value. My neighbors and I are presently whether we should file for a property tax abatement and there was some concern that if we win, then the new assessed value would compromise our chances to sell at a higher price one day. I thought that a buyer would be less inclined to pay a higher price if the assessed value was lower than the asking price. But this article really clarified the matter and now I understand that the two are completely separate entities.