Often a home's values are lower than the sales price since many concession are made. Before putting it on the market, they may install new carpets, new windows dressings, ceramic tile, new kitchen appliances, redo the kitchen, new ceiling fans, repaint the interior or replace window air conditioner units. If the home still does not sell they may paint the exterior, do intensive landscaping, walkway changes or change entrance features etc.
If after six months on the market, a potential buyer may like some of the home but did not add on features and ask for a price concession. Sellers may have to make numerous financial concessions, not reflected in the sales price to unload their properties. This is a buyers market.
If you sold you a house for $ 550,000 but wave you $ 50,000 in concessions, then that house's real value is $ 500,000. But, since only the sold price is recorded you can not tell the Department of Revenue that home values is lower than the sales price when you use a comparable in your property tax appeal or appraisal unless you prove it with a study.
The housing glut, increases in property taxes and skyrocketing homeowners' insurance rates are reflected in the real estate market. Price concessions are hard to prove and a study to prove a lower sold value for the comparable homes due to price concessions is debatable.
Often a home's actual value is lower than the sales price since many price concession are made. If you are using a comparable sales to determine market value, that figure may in reality be much lower than the actual recorded price indicated.
Apply our property tax guide to any home or property: Get the right values and plug in the figures for your house. Do not get stuck on the learning curve scratching you head what to do next. Eliminate mistakes in property taxes and property tax appearances .