I don't know about your areas, by our Assessed Values as compared to List Price/Market Values are soooo skewed!

For example, a home assessed at $1.2MM sold for $950K.  An almost identical home, assessed at $1.1MM, sold for $1.5MM.  Not my listings, unfortunately.  However, I find that because of the spike in home sale prices over the past few years, assessments have, naturally falsely increased. I don't know that "falsely" is the word I'm looking for, but can't presently come up with a better word.

Now, though, prices have fallen. Or have they risen, based on the above example?  My own home is assessed at $399K,(up from $250K four years ago),  yet I know for a fact that I couldn't get $325K for it from a cash Buyer with no appraisal!  The only improvement on the house in the last 40 years is a brand, spankin' new septic system.  Needs a new roof, windows, trim (termites. Gotta love them woodpeckers.  I'm hoping they get all those "termy's), basement floods if the sump pump dies, etc.) It doesn't even have an automatic garage door opener! All because other homes in my 'hood have sold for over $600K,  none under $500K.  My property taxes seem to be increasing exponentially.  Yeah, I'm going for the abatement.  That's another story.  Moving right along.

My point is.....(about time, huh?).....Are your Assessments vs. Market Values as skewed as mine?  And how do you explain that to a Buyer who sees an assessment of, for argument's sake, 400K vs. an asking price of $520K?  Conversely, how do you explain a list price of say, $550K vs. an assessed value of $650K (the first question is "What's wrong with it?). 

My present explanation is that the Assessment is based on a state formula and the specific Town's needs for revenue.  While the assessment can go up, the tax rate can go down, and result in either an increase in property tax, or a decrease.  I've been doing my research on this and have no real and understandable explanation!  Despite the internet, it's almost impossible to get an understandable explanation of how municipalities arrive at assessments and property taxes.  Just try deciphering the Department of Revenues rules and regs. And still.......Absolutely none of this (assessments)  has any effect on fair market value of a home!  The only factor that applies is what a Buyer is willing to pay for a particular property!

I've thought about printing the "bare bones" listing sheets that don't include assessed values, but I just believe that's wrong and I have to be able to explain why a property is appropriately priced, overpriced or underpriced.  It's all public knowledge anywya. Mind you, our Assessors do not visit homes to see their "state of repair".  Improvements or lack thereof.  They use building permits to determine significant home improvements that will increase the value of a home.  And, of course, they use Registry Records.

I don't blame the Towns for the skewed assessments.  They have very few staff and cannot visit homes.  They're doing the best they can with what information they have available to them over the internet.  Much like Z****w dot com, which is also skewed for the same reasons.

Have I rambled and spewed enough?  Think so.  Thanks for listening and if anyone has any suggestions on how you handle this, I would be most grateful!