Would anyone be interested in me posting entries with all the properties currently on the market, for less than their assessed values?
There aren’t that many, to be truthful.
Leave me a comment. It would take some work to put together the list, so I’m not sure it’s worth the time and effort, to do every week or so.
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Loading ...I, for one, would love to see such a list!
John… just as an FYI… here is someone doing this for sold vs appraised.
Dear John,
I enjoy your
list postings.
1. listed for sale less assessed value is interesting
2. Would be good to
see your older posts that looked at what is available for $350k or at $400k.
3. Perhaps another
list good be just places that you like (best lofts, best modern, best traditional
etc.).
Regards,
Steve
I think the most interesting thing
is that there ARE properties selling for less than their appraised value.
After all
doesn’t property always go up in value (at least that’s what David Learah was pitching on
national TV)?
I think the most interesting part would be to track the overall number and
possible percentages historically in a graph format.
Hi.
The Platial map shows sold properties, and seems to be user-generated; this
might be of limited use to people.
I would include all MLS properties with list price less
than assessed value, updated manually, but completely, every day.
I wouldn’t be able to
post this information on the web for everyone to see, only to people who signed up for it - but not
as my client, or anything that strict.
I am leery of anything the guy over at “the real
estate cafe” does, because he seems like kind of nutty. And, extremely angry and/or bitter. I
really don’t know if he even does any business, at all.
The correct term is “assessed
value” not appraised value.
Appraised value is when a home appraiser goes out to the
property and looks at it, then compares it to other properties that recently sold. The appraised
value is only as good as the appraiser. His or her data is historic, so it can only measure what
people, in the past, thought similar properties were worth.
In the hot market, appraisals
would come in less than what people were willing to pay … meaning, the banks wouldn’t be willing
to make loans for the full value. This meant buyers had to either kick in cash or negotiate the
price down.
Assessed values aren’t the same thing. Assessed value is calculated by your
local city or town government. Again, it is an estimate of what your property is worth, based on
other sales in the neighborhood.
Boston’s 2007 assessed values were actually based on the
values as of 1/1/2005; that was the top of the market, so if list and sales prices are less today
than the assessed values, it’s because the market has cooled.
The assessed value is the
city’s belief of what a property is worth, in order to tax it correctly. During the hot market of
the past several years, people who had owned their homes for years were suddenly faced with huge
property tax increases, because their homes were worth a lot more. For elderly, etc., it was a
shock, especially because they may have already paid off their loans and were on limited
incomes!
People have always had the opportunity to challenge the assessed values of their
properties, and many will.
Reported assessed values are only helpful if you want to
determine what your annual property taxes will be. Other cities in the US have ridiculously high
property taxes - a $250,000 home in Albany might cost you $10,000 a year in taxes.
Crazy!
Boston actually does pretty well, although what you get for $250,000 will only be a
studio apartment - you might pay $2,600 in property taxes, but with the residential tax exemption,
you would end up at $1,100 per year, maybe.
I offered to create a list because some people
go crazy on the idea.
A property is only worth what someone is willing to pay.
A
property is listed at what an agent and a seller think they can get for it. It’s a
guess.
So, assessed value vs. list and sales price is basically the estimate of the city vs.
the estimate of the sales agent.
Either, neither, or both may be right or
wrong.
Historically, home prices have increased; whether or not they have beat the rate of
inflation, I don’t know.
John,
You’re right that I mispoke when I said appraised. And thanks for the more detailed
breakdown on the subject.
My only point is that if you went back to 2005 pundits with
vested interest such as David Learah were basically promising everyone that house prices never
fall, and not caveating it by saying over the long term or historically or anything like that.
They were leading people to believe that houses never fall in price year to year (which should have
been immediately refuted by the fact that they did in the late 80’s early 90’s but whatever).
So in that perspective it is a pretty big deal that houses/condos/etc are selling for less
than their assessed value. What would be interesting to see is what the historical percentage is
of houses sold in this state, versus what the trend is going to be like for the next year or
so.
Also just want to say thanks again for having a blog that’s worth checking everyday!
John,
An assessed value versus
list price analysis would be most welcome.
Keep up the spectacular work.
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