Tax Assessment vs Market Value | Why is the Tax Assessed Value Different than the Sales Price?

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Arlington, VA real estate agent and Realtor Matt Leighton talks about the differences between the tax assessment and the market value (sales price) of a property.
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Tax assessment (via topics.arlingtonva.us/realest...
Each year, the Department of Real Estate Assessments determines the value of real property in Arlington County. The assessment is then multiplied by the real estate tax rate, which is set by the County Board each year. Assessments begin Jan. 1. Assessors do not determine your property taxes; their job is simply to ensure that your assessment is fair and equitable.
Information on tax rate and assessments: budget.arlingtonva.us/
Basically, the 2017 Arlington VA property tax rate is $.991 per $100 of assessed value. So a $400,000 assessed property would have property taxes equal to $3,964.
The assessor usually doesn’t visually inspect the subject home or the comparable homes. So any updates are most likely not taken into consideration. They have their own calculation for coming up with the assessment. They simply look at the size of the home, the number of bedrooms and bathrooms, and if there have been any permits issued for larger renovations, that would affect the assessment as well.
Improvements and current market condition are not factored in. Occasionally, you might get a knock on your door from someone in the county real estate office asking to inspect the property for appraisal reasons but this is a very rare occurrence.
I think there is one way to look at the sales price and tax assessment that can help you out as you’re looking to make an offer on a home. And that is if two comparable properties come on the market. You can compare them to their respective tax assessments. So 2 similar condos in the same building come on and one is priced higher than the other…is the higher one also tax assessed for a higher amount? It should be. It could be a way to find out if one property is over-priced.
If you don’t like your assessment, you can file an appeal. Don’t complain to your friends and do nothing about it. Present your case and complain formally to your jurisdiction and maybe they will lower your assessment.
Video location: Penrose Square - Arlington, VA
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Matt Leighton - Arlington VA Real Estate Agent
Licensed in VA and D.C.
Century 21 Redwood Realty
1934 Wilson Blvd Arlington, VA 22201
• Tax Assessment vs Mark...
please note the obvious - Matt does not work for or is not affiliated at all with Arlington County.

Опубликовано:

27 дек 2016

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Комментарии : 32

@TheMattLeighton 6 лет назад

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@carlosuchuya6036 4 года назад

Thank you, Great explanation!

@vihangnair 2 года назад

Pretty solid green screen lol. Great info Matt, love the channel

@TheMattLeighton 2 года назад

This one actually didn’t have a green screen haha. It was very noisy and very sunny that day! I appreciate you watching!

@Rita-23 2 года назад

Thank you. I had always understood there would be a difference (the reasons you outlined) but didn't expect a $1M difference in 4 homes I saw online. (Asking price $1M+ more than assessments).

@1980sFreak 5 лет назад

This video kicks ass!

@TheMattLeighton 5 лет назад

Thank you!

@diamond6256 2 года назад

Why is property tax based on market value instead of purchase price? That means I am paying tax on $100k of thin air. For seniors this is not good. ($152k to $245k) I appealed to no avail. My house is paid off and I will have to sell my property because I cannot afford the property tax living on social security. SO what does this mean? I am renting my paid for own that I paid for 30 years from the city FOREVER.

@suddenlyitcame1829 Год назад

Thanks!

@monicarenee7949 2 года назад

This is the first video that actually answers the question I have. Thanks! I’m trying to buy a new house but if the purchase price is the basis of the taxes, I fear taxes will be too high. Since it’s based on assessed value, seems a bit more manageable.

@rcruz401 2 года назад

GREAT CONTENT! I just renovated 2 units with Granite Countertops and stainless steel appliances. Is it beneficial for me to include for my assessment which is coming up now?? I'm in process to also try and do a Cash-out-refi

@pattysherwood7091 4 года назад

My tax assessment (in Somersworth NH) went from $94,000. (after a walk through assessment by a tax official about 4 years ago) to $166,000. based on comparable houses recently sold in my city in the fall of 2019. I can't imagine those houses had a fifty year old furnace, a corroding water heater, a disgusting old bathroom, and a shabby kitchen with broken asphalt tiles on the floor. I would think the sales price of a home reflects the value of the work done to improve the property in order to get a better price. My house has not had improvements and needs a lot of work. I am a disabled old lady. I am on SSI. I can't afford these higher taxes. You mentioned that future assessments would be based on the previous ones. Well, I thank you for helping me understand a little more about this misery.

@TheMattLeighton 4 года назад

So sorry to hear that Patty. Do you feel like the assessment on your home is incorrect? You may be able to contact your local assessors office and have them come out to your property to view it in-person. Or, you could find recent comparable sales that support a lower tax assessment than what you're currently at. That's certainly a significant raise in taxes. Best of luck to you

@RobMcDougall 4 года назад

Also being from NH I assure you that there are plenty of disgusting old bathrooms and shabby kitchens elsewhere in Somersworth. ;)

@pattysherwood7091 4 года назад

RobMcDougall thank you for your comforting words. You made me laugh. It is the middle of the night and I am studying the Bible....I happened to look at my phone. Now I am going back to the glorious gospel. Have a nice day. Come visit me anytime. (I have started calling my city Sodomsworth because of our proud mayor and others who advertise our city as a tolerant rainbow city. Good grief!)

@johnfukuda6023 4 года назад

Hey Matt great content here! I’m interested in buying vacant lots which I can find the accessed value pretty easily, but comps for market value almost impossible. Because it’s vacant land will the accessed tax value be close to market value in your opinion? Thanks in advance!

@theveed8220 Год назад

Dude that’s what I’m going thru! What did you end up doing?

@8beatking 4 года назад

So are you paying the tax assessment every year or the property tax?

@HammadKhanYT 2 года назад

In my area, asking price is 260k and tax assessment is only 34k, I am not sure why is that?

@corbin8930 4 года назад

Is it possible for fraud within the assessment? I know of a piece of commercial riverfront property that is worth millions that is only assessed at 1000. Our city is potentially missing out on hundreds of thousands of dollars.

@TheMattLeighton 4 года назад

Potentially, yes. Could just be a mistake as well.

@corbin8930 4 года назад

Appreciate the reply Matt, the owner of the property was actually taken to court a few decades ago by their relatives for using deceiving appraisal methods. So I have good reason to suspect fowl play in this instance! law.justia.com/cases/south-carolina/court-of-appeals/1984/282-s-c-61-2.html

@irmageller 3 года назад

Thank you very much! I appreciate your time. O hope i did understand. 🥴🤔😀😬😂

@TheMattLeighton 3 года назад

Thanks for watching!

@Floof_Factory 3 года назад

I see a property thats 10k but the assessed tax value is 75k. I wanna lower that before I buy it

@diamond6256 Год назад

The appeal board told me this year (2022) that they only due Market Value, not the assessed value, which is BS. They did not consider estimates, drainage issues, window issues and sprinkler systems issues. They said it does not have much value. Well, it does if you are selling, which I am not. I did get $20k off Market value which means nothing to me AND increased the Improvement value $15k. I asked them why didn't Over 65 increased since everything else did, they could not answer. The comps they provided was not comparable to my home and had bigger sq footage, more bdrm and baths. They told me since my house was 1983, they wanted pictures of 1983 kitchen and baths with avocado deco and such, never been updated. REALLY? IT IS RIGGED! Assessed value stayed the same. The purpose of Protesting Property Tax is to get a reduction, I don’t see where they did that.