Tax Assessed Values vs. Sales Values

11/07/2008

By Sarah Norton


I recently had a request from a friend and client looking for specific data on the homes sold within the last 12 months. He was looking to compare the tax assessed value and the sales price. There is no program that will show us the percentage differences between these values so I had to do the research manually. I focused my research on detached homes in the west hills, sold over $600,000. There were a total of 134 homes sold in the last 12 months. The practice turned out to be an interesting study on tax assessed values and how wide they vary relative to sales prices.

The numbers were all over the board. Some homes had tax assessed values that were half of their sales price and some homes had tax assessed values that were twice their sale price. So what this tells me is that tax assessed value is really a subjective number and varies based on the age of the home, the last time it was sold, the location and the condition. However, if you average all of the percentage differences between assessed and sales price values, then assessed value is 100% of sales value. In the past, tax assessed value has generally been lower than market value or sales prices. However, with the correction in the marketplace- we are seeing very little percentage difference between tax assessed value and sales prices.

Categories: Real Estate
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