Assessed Value vs Market Value

I received an offer the other day with a purchase price well below asking and market value.  When I asked the agent where they had come up with this price, they said it was a good offer because it was above the Boston home's assessed value.  Instead of being annoyed because these poor buyers weren't educated about what the assessed value really is, I then created a chart of the assessed value verses sold price within the last year in that specific town.  The ratios were all over the map, from 87% to 102%.  Clearly, this is not an effective way to value a property.  Market value is the most effective way to come up with a good price for a home.  Market value looks at the last six months sold property with similar criteria as the one you are looking for. 

Assessed value is merely the way the town can calculate how each home can be taxed.  Every several years, the town will want to do a walk through of your home to make sure the value they are coming up with is accurate; taking into consideration updates and additions to the home.  If the town does this over the course of a couple of years, a Boston North West that had a walk through 6 years ago and then had some updating done 3 years ago will have an inaccurate assessment unless you have the town come out to change the assessed value.  People don't tend to do this, since no one wants to pay more taxes on their home. 

It is extremely important for the buyer to understand that the assessed value should not be used to determine market value.  Market value is using the most up to date information for sold properties taking into account all updates and additions to the Boston North West property.

Heather Plate, your source for Boston North West real estate

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