Appraisal v. Assessment

Folks, we all want to be experts in real estate and know what were talking about at the cocktail party. And we all certainly want to make a "good deal"......But an assessment isn't the same as an appraisal.

Check this out..... Client says to me "....it's such a good deal, (the property) is priced $90,000 less than the assessment!"

I hear this about two dozen times a year. And while a property listed for sale $90K below the assessment may very well be a "good deal", it might not be. Here is why:

An "Assessment", or Real Estate Tax Assessment is issued on all real estate property in respective Counties/Municipalities. The County DOES actually have its own County staff appraisers watch over neighborhoods and help assign values and utlimately put a number to the assessments on all of the real estate- but this happens only once a year! And the County Staff we all know doesn't go inside every single house, every year! The appraisers try to keep up the market the best they can. I'm sure its a tough job, but because of the sheer numbers of properties out there.....assessments by nature can't possibly be as accurate or reliable as a private appraisal. Not only that, if an assessment value is placed on a property in March, and its used as a point of reference in November....the market most likely has changed.  

A real estate appraisal, by a professional appraiser will give you a more accurate number of what the home is worth.  The appraiser is going into homes each and every day and will let all parties know the most accurate value.

If you really are looking for a good deal, work with a great Realtor who can negotiate an excellent price and terms.