What is an assessment and how does it affect what I can sell my house for?
Posted by Heidi Fore on Sunday, May 22, 2016 at 3:26 PM By Heidi Fore / May 22, 2016 Comment
If you want to skip to the bottom line of this blog post, here it is: you cannot look at the tax assessed value of a property to determine what you could buy it for or sell it for.
There are about a 1,000 reasons for this. Here are a few:
(1) Assessments change for many reasons. A wife could sell the house to the husband in a divorce. A person could sell the house to their grandkids at a low price.
(2) If there was a short sale, the assessed value would change to the lower value when the new owner buys it.
(3) Property owners can appeal their assessments after purchase to get the assessment lowered so that they can pay lower taxes.
(4) Seller motivation has nothing to do with the tax assessed value. Someone could own a house for 50 years, have a lifetime of memories in that house. It could be in a great location. The tax assessments could have gone up minimally during that time and so that seller could sell their house for much more than what the PVA office says the house is worth. It is all up to the buyers who are buying in that area.