When a sale price of a home is listed what does tax value mean?

Question

I read where a house sold for $380,000.00 and next to it a tax value of 125,000.00 was listed. What does that mean?

Answer 1

The tax value is the value the county puts on a property for collecting taxes off of...You want your tax value to be low on a house because you will pay less in taxes...But beware if you are buying a house..They usually adjust the value after it sells to the price you paid for the house so your taxes will go up!!...ss

Answer 2

Normally a municipality or a county assesses values to structures and lands based on "best usage," zoning, and, yes, perhaps market information. Typically the "tax value" of a property lags behind market value, as many local governments only adjust these values up or down every five years (Some less, some more often.). "Market value" is usually determined by the prices of comparable properties sold in that or a similar/nearby market. Licensed real estate brokers and agents should be able to give you an estimated market value of a property by looking at "comps" (comparable properties). However, a licensed appraiser may use other means, including cost of materials to re-construct, etc., to provide an APPRAISAL value, which is the amount that a bank will use so to ascertain how much they will be willing to loan against purchase of that property.

Lastly, a "sale price" is but an offer from the seller and/or realty firm. In many markets this may be above or below the appraised value, depending on market conditions and the seller's situation. In a spiraling, speculative market, a seller may try to "shoot high" in hopes of finding an eager, well-financed customer. Or, the seller may desperately need to dispose of the house/apartment, and list a price below comparable properties.

Answer 3

The tax valuation is not the same as market value. Market value would be what the house is worth on the market and changes often. Tax valuation is usually a percentage of the market value as determined by the county at some point. It is amended every few years through a change in valuation done usually by formula. The tax valuation times the tax rate is your property tax amount.

Answer 4

The value according to the tax assessor is often far from the market value. Not in every county in the US but in some they don't relate to each other.

Best of luck