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    Renting & Real Estate

    Question

    Assessment Value (real estate tax) vs. Purchase Price?
    I purchased my first place about 6 months ago and just received my first real estate tax pro-rated bill showing my assessment value. The assessment value on the bill was about 2/3's of what I paid for the place. Is that normal or did the value drop that drastically in the past 6 months?
    20 days ago 5 Answers

    Best Answer

    Chosen by Asker
    The tax assessment has little to do with the home's worth. For one thing, in some places homes are only assessed every x number of years. Even then, the tax assessment may be set to a value that is some percentage of the market value. Check your county's tax records website to see if there is an explanation as to how it is determined.
    a few seconds ago

    Other Answers

    • It is normal for the assessed value for tax purposes to be lower than market value. The property appraiser has rules for assessing a property for tax purposes. This does not affect the market value of your property.

      by Serge M - 12 hours ago

    • That's normal... it is always lower and it has nothing to do with the actual value of your home. Be glad your taxes are based on this much lower number! Your home's value is what someone is willing to pay for... not what a piece of paper states. http://www.choicefinance.net/

      by matsonb - 12 hours ago

    • The answer to your question is more complex than the answers already given! In general they sound correct but, you need to know the relationship between 2/3's of your purchase price and the annual tax charged! In order to correctly answer this question, you need to find out whether or not your county or state, (like Florida) bases your taxes on the purchase price or if you live in a state where the use the assessed value X a mil rate. Call the county clerks office and they'll tell you exactly how it's calculated. Then you'll have the correct answer...Congrats on the new house!

      by da_zoo_keeper - 12 hours ago

    • Assessment is based on market value or similiar homes to yours. It is normal.

      by hirebookkeeper - 12 hours ago

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