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Question about my nassau property FMV vs. Actual FMV...
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Question about my nassau property FMV vs. Actual FMV...
I KNOW that everyone says this valuation means nothing but, in my area, I see that some houses are selling very close to the FMV or over while others are selling for hundreds of thousands over. Why could this be?
Lets assume you have a house that was purchased in 2006 for $700,000 more than it its current FMV on my nassau property. How can that be? Don't they adjust the values based on when a house sells? And, lets say that same house is now listed for $500,000 more - does that mean it is WAY overpriced?
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Posted 5/1/11 5:01 PM  |
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bobby769
LIF Infant
Member since 7/10 253 total posts
Name:
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Re: Question about my nassau property FMV vs. Actual FMV...
The values listed at my nassau properties are FMV for tax purposes which is different from FMV for resale purposes. Generally for tax purposes, the values tend to be (or are supposed to be) lower than FMV for resale.
FMV for resale is what people generally think of when they think of property values and what their house might be worth or what houses are currently selling for.
Any differences you see between the listed values could be for a number of reasons. Values listed at my nassau could seem skewed by recent sales, grievances, or the county's review board.
You might see a house that was last sold and updated 4 yrs ago compared to a different house w. a lower value listed. The 2nd house may be larger but has a lower value because it may have been sold very recently. The lower value could be a result of the drop in property values over the last 3 yrs.
Lets assume you have a house that was purchased in 2006 for $700,000 more than it its current FMV on my nassau property. How can that be? Don't they adjust the values based on when a house sells? And, lets say that same house is now listed for $500,000 more - does that mean it is WAY overpriced?
A 700k difference does seem extremely large (unless you're talking about an '06 sale price of something in the low millions - which I doubt) but some difference would be expected because the county probably has reassessed the property value to be lower than that from 2006. They don't only adjust when a house sells, they also adjust on a regular basis. I think they are reassessing throughout the year.
If a saw a house listed for 500k greater than 2006 I'd wonder if the house was recently renovated and/or the owner should look into a grievance. I'd also look at recent sales in that neighborhood.
My nassau values should be used if you're interested in comparing property taxes. But if you're interested in looking at the traditional definition of FMV, go to a realtor or look at the recent sales prices listed at zillow.
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| Posted 5/1/11 5:24 PM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: Question about my nassau property FMV vs. Actual FMV...
Posted by bobby769
The values listed at my nassau properties are FMV for tax purposes which is different from FMV for resale purposes. Generally for tax purposes, the values tend to be (or are supposed to be) lower than FMV for resale.
FMV for resale is what people generally think of when they think of property values and what their house might be worth or what houses are currently selling for.
Any differences you see between the listed values could be for a number of reasons. Values listed at my nassau could seem skewed by recent sales, grievances, or the county's review board.
You might see a house that was last sold and updated 4 yrs ago compared to a different house w. a lower value listed. The 2nd house may be larger but has a lower value because it may have been sold very recently. The lower value could be a result of the drop in property values over the last 3 yrs.
Lets assume you have a house that was purchased in 2006 for $700,000 more than it its current FMV on my nassau property. How can that be? Don't they adjust the values based on when a house sells? And, lets say that same house is now listed for $500,000 more - does that mean it is WAY overpriced?
A 700k difference does seem extremely large (unless you're talking about an '06 sale price of something in the low millions - which I doubt) but some difference would be expected because the county probably has reassessed the property value to be lower than that from 2006. They don't only adjust when a house sells, they also adjust on a regular basis. I think they are reassessing throughout the year.
If a saw a house listed for 500k greater than 2006 I'd wonder if the house was recently renovated and/or the owner should look into a grievance. I'd also look at recent sales in that neighborhood.
My nassau values should be used if you're interested in comparing property taxes. But if you're interested in looking at the traditional definition of FMV, go to a realtor or look at the recent sales prices listed at zillow.
I guess my bottom line question is this. If the house sells for hundreds of thousands more than the FMV for tax purposes will your taxes go up significantly after buying the home - as in, is the FMV number reassessed based on the sale?
If this is the case, I am wondering how the current numbers could be that out of whack if the house was only purchased 5 yrs ago by the current seller.
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| Posted 5/1/11 6:19 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Question about my nassau property FMV vs. Actual FMV...
You've just described the problems with Nassau's assessment system. There is no rhyme or reason to it. Even the assessor will admit that.
If you buy a house for $700K and the current FMV according to the County is $500K, there IS a chance your assessment will go up. However, the county generally increases assessments town-wide NOT on an individual basis. They just don't have the resources to do so.
The trend for the 2011/12 tax year is that assessments have gone down. You will see a lot more stability going forward, however. The County is beginning it's new program of re-assessing every 4 years rather than every year.
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| Posted 5/1/11 7:36 PM |
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bobby769
LIF Infant
Member since 7/10 253 total posts
Name:
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Re: Question about my nassau property FMV vs. Actual FMV...
I guess my bottom line question is this. If the house sells for hundreds of thousands more than the FMV for tax purposes will your taxes go up significantly after buying the home - as in, is the FMV number reassessed based on the sale?
If this is the case, I am wondering how the current numbers could be that out of whack if the house was only purchased 5 yrs ago by the current seller.
Yes, I would expect that if a house sells for significantly more than the Tax FMV, the new owner should expect a fairly high probability that their taxes would go up. If viewed properly this can actually be a control in the system that can prevent spikes in house prices - it's kind of a disincentive for a buyer to pay significantly more for a house.
Just to make sure I understand you correctly;
A house was bought in 2006 for 1 million, the current FMV listed at my nassau properties is $300k?
If that is correct, the first thing I'd wonder is if the buyer overpaid in 2006 - which seems possible considering what the market was like in 2006.
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| Posted 5/1/11 8:46 PM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: Question about my nassau property FMV vs. Actual FMV...
Posted by bobby769
I guess my bottom line question is this. If the house sells for hundreds of thousands more than the FMV for tax purposes will your taxes go up significantly after buying the home - as in, is the FMV number reassessed based on the sale?
If this is the case, I am wondering how the current numbers could be that out of whack if the house was only purchased 5 yrs ago by the current seller.
Yes, I would expect that if a house sells for significantly more than the Tax FMV, the new owner should expect a fairly high probability that their taxes would go up. If viewed properly this can actually be a control in the system that can prevent spikes in house prices - it's kind of a disincentive for a buyer to pay significantly more for a house.
Just to make sure I understand you correctly;
A house was bought in 2006 for 1 million, the current FMV listed at my nassau properties is $300k?
If that is correct, the first thing I'd wonder is if the buyer overpaid in 2006 - which seems possible considering what the market was like in 2006.
Buyer paid $1.77 current FMV is for '11-'12 is 1.03
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| Posted 5/1/11 9:11 PM |
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bobby769
LIF Infant
Member since 7/10 253 total posts
Name:
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Re: Question about my nassau property FMV vs. Actual FMV...
Yeah, that's my first thought.
I think the buyer may have overpaid in '06.
Unless this was by far the best house in the neighborhood.
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| Posted 5/2/11 10:42 AM |
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