assessor's property value and sale price

Hello.
I recently purchased a property. The assessor is basing the property value on the sales price. This then will lead to some property tax amount. However, the property appraised at much lower than the sales price. I feel that the market values is closer to the appraised value than the sales price.

However, the person doing the paper work that the county, I think, uses the sales price as default for determining the property tax.

Does anyone know if the county assessor should use the sales price or the market/appraised value?

thanks,
Joseph

Hi Joseph,

It depends on what state you’re in. California, for example, has Prop. 13 which allows for property tax to be increased when the property sells. Other states use the assessor’s ‘appraised’ value although many times it is much less than market value.

If you’re not in a state that operates like California and you feel the assessed value is too high, sometimes you can appeal to the assessor’s office for a reduction. There are specific time constraints and forms required so you’ll probably want to check with your assessor’s office on that. That information is also usually stated in the annual assessment notice and the annual tax bill, at least here in Washington where I work.

Good luck!

Cate

Cate is right. In most states your tax value is considerably less than the appraised or sale values.

However, the property appraised at much lower than the sales price. I feel that the market values is closer to the appraised value than the sales price.

Maybe I am misunderstanding this statement?

If this is true then I would be concerned about the price you paid for the property. Why would you pay more than what it was appraised for?

Well, the sales price is what the property is worth. The definition of worth is what someone is willing to pay. Since you paid it, it’s worth that.

An appraiser gives you his ‘opinion of worth’ but it’s just an opinion. The true worth is what the property sells for, whether it’s more or less.

DFWHolding,

 I wish more people got that!!!