Assessed vs. "actual" values of homes for sale?

Piston · 07-03-2017, 07:21 PM

I searched, but didn't come up with anything recent. My wife and I are looking for a second home in the area and wondering about the assessed values.

Is there a general rule of thumb regarding assessed value and the relationship to what a home would actually sell for? We are mostly looking in Alton Bay (not on/near the water due to affordability)

Does assessed value take into account things that need to be updated? (such as kitchens/baths/flooring etc?

jeffk · 07-03-2017, 09:30 PM

One of the first things to differentiate is assessed for what purpose? Assessing for taxes can use a slightly different set of rules than assessing for sale. Since assessing for taxes is commonly updated regularly and is public info, people often look at these numbers as the home's resale value. It is true that it should be in the ballpark of the sale value but an assessment for sale will give a better idea of the sale value. That information may or may not be available. If you are getting a mortgage, the bank will want an assessment. Unfortunately that doesn't help with the search process.

In assessing, many judgements as to current condition or age can be factored in. For example, a roof that is reaching the end of life for the type of roof can decrease value. If siding needs painting, its condition may be downgraded to fair. Does an assessment take into account every possible aspect of wear and tear? No. Also, it may not downgrade things that might not be up to standards but were acceptable when the house was built. I sold a house that did not have Ground Fault breakers in the kitchen or bath. New houses must have them but it was legal when the house was built. The house value was not downgraded because of the lack of GF. The buyer was concerned about their absence but I looked at it that they could upgrade the electrical if they wanted but I was not going to pay for it. The septic was legal but a bit undersized. They paid to upgrade it after the sale. There were a few other things that fell into that category. Most of them were mentioned in the house inspection but not the assessment.

Finally, an assessment is just a guideline. What a house is worth is a negotiation between buyer and seller within current market conditions. Tight markets with low inventory push prices up beyond assessments. A buyer that finds what they consider the "perfect" house might pay more than assessed value. A seller may be under pressure to sell and take less than assessed value. Each sales situation is unique.

Hope this help a bit.

Doobs41378 · 07-04-2017, 06:32 AM

I would say where we live, the houses sell for much more than the city assesses them at for tax purposes. I would not use that as any kind of guide. I would use other comps that have sold, which I am sure the seller and their agent have used as well to come up with a selling price.

BroadHopper · 07-04-2017, 06:56 AM

http://www.revenue.nh.gov/mun-prop/p...asb-manual.pdf

Interesting reading as NH is somewhat unique compared to other states.

07-03-2017, 07:21 PM	#1
Piston Senior Member Join Date: Feb 2008 Location: Upton, MA/Alton Bay Posts: 81 Thanks: 20 Thanked 14 Times in 8 Posts	Assessed vs. "actual" values of homes for sale? I searched, but didn't come up with anything recent. My wife and I are looking for a second home in the area and wondering about the assessed values. Is there a general rule of thumb regarding assessed value and the relationship to what a home would actually sell for? We are mostly looking in Alton Bay (not on/near the water due to affordability) Does assessed value take into account things that need to be updated? (such as kitchens/baths/flooring etc?

07-04-2017, 06:56 AM	#4
BroadHopper Senior Member Join Date: Oct 2004 Location: Laconia NH Posts: 5,509 Thanks: 3,116 Thanked 1,089 Times in 783 Posts	This should help http://www.revenue.nh.gov/mun-prop/p...asb-manual.pdf Interesting reading as NH is somewhat unique compared to other states. __________________ Someday may never be an actual day.

07-03-2017, 09:30 PM	#2
jeffk Senior Member Join Date: Feb 2004 Location: Center Harbor Posts: 1,130 Thanks: 201 Thanked 421 Times in 239 Posts	One of the first things to differentiate is assessed for what purpose? Assessing for taxes can use a slightly different set of rules than assessing for sale. Since assessing for taxes is commonly updated regularly and is public info, people often look at these numbers as the home's resale value. It is true that it should be in the ballpark of the sale value but an assessment for sale will give a better idea of the sale value. That information may or may not be available. If you are getting a mortgage, the bank will want an assessment. Unfortunately that doesn't help with the search process. In assessing, many judgements as to current condition or age can be factored in. For example, a roof that is reaching the end of life for the type of roof can decrease value. If siding needs painting, its condition may be downgraded to fair. Does an assessment take into account every possible aspect of wear and tear? No. Also, it may not downgrade things that might not be up to standards but were acceptable when the house was built. I sold a house that did not have Ground Fault breakers in the kitchen or bath. New houses must have them but it was legal when the house was built. The house value was not downgraded because of the lack of GF. The buyer was concerned about their absence but I looked at it that they could upgrade the electrical if they wanted but I was not going to pay for it. The septic was legal but a bit undersized. They paid to upgrade it after the sale. There were a few other things that fell into that category. Most of them were mentioned in the house inspection but not the assessment. Finally, an assessment is just a guideline. What a house is worth is a negotiation between buyer and seller within current market conditions. Tight markets with low inventory push prices up beyond assessments. A buyer that finds what they consider the "perfect" house might pay more than assessed value. A seller may be under pressure to sell and take less than assessed value. Each sales situation is unique. Hope this help a bit.

07-04-2017, 06:32 AM	#3
Doobs41378 Senior Member Join Date: Jul 2016 Posts: 510 Thanks: 234 Thanked 88 Times in 73 Posts	I would say where we live, the houses sell for much more than the city assesses them at for tax purposes. I would not use that as any kind of guide. I would use other comps that have sold, which I am sure the seller and their agent have used as well to come up with a selling price.