I had this request from a person in the local community regarding what the average difference was between the assessed value for tax purposes and the average market value (sold price) for homes. I've asked if I could include it here for everyone to everyone to review. The following is a copied version of our e-mail communications. If you would like similar information about a different area surrounding St Cloud MN, post your requests here or e-mail me at jason@stcloudedina.com. :
Inquiry Message: Jason, I was wondering if you could tell me approximately which percentage a home's market value is over the tax value in Waite Park . Ie: Your tax value is at $112,000. What percentage over that would you estimate a homes true value to be? 10-15% or something? I would appreciate any info you could give. Thank you, S.T.
Response: S.T, You had requested information regarding the market value of a home vs. what the county tax assessor has on record, correct? I need to say that there are differing percentages of market values vs. assessed values depending on the price range of home in which you are looking. Where a $99K home might be assessed on average at $93K - A home with a market value of $190K might be assessed on average at $188K.
If you could give me the price range in which you are looking, I will average out the sold prices in that price range vs. the assessed values if you'd like.
The one thing to note about assessed values is that the counties are generally 1-2 years behind the market trends and reflect accordingly. What I mean by this is that the county is raising assessed values at a rate similar to what appreciation was in 2005 or 2006 for this year. We might be seeing market values fall in 2007 as people sell their homes, but the assessed values will rise the same year.
Please e-mail me back with the information regarding general value range and I will be glad to get you a concrete statistic for the Waite Park area.
Thank you,
Jason Tangen
Added Information: Jason,
Thank you so much for your quick response. The values of the homes would probably average $100-$150k. If that is too broad of a figure, I would base it on $125k. Again, I really appreciate your efforts and getting back to me so quickly!
S.T.
Answer: S.T.,
I've pulled out the sales in Waite Park on homes that have been listed since Jan. 1st of 2007 and found the following stats for you:
Assessed Value on average is 95.7% of the Sold Price
Highest Positive Difference was Assessed Value 17.5% higher than Sold Price
Lowest Negative Difference was Assessed Value 77% of the Sold Price
Median Difference was Assessed Value 95.7% of the Sold Price
There was only 4 homes that sold for less than their Assessed Values with numbers of 1.4, 5.8, 5.2, and 17.5.% higher than the Sold Price
Thank you for the challenge to pull together these numbers. If you have any other questions, comments, or concerns please give me a call or e-mail me back.
Also, with your permission, I would like to take this issue and post it on my blog for everyone to see. I won't use your name, but I will put down the general data. Would that be OK with you?
Jason Tangen
Comments
Posted by: John | August 23, 2008 05:59 AM