Expert: Dick Dennis - 7/2/2007

Question
Hi - I have a question regarding how homes are assessed.  I am relocating to a new area and see many houses that are priced at for instance 92,000.  When I check the assessor's page for the area the home is assessed at $115,000.  I love this house but would never pay that much for the area it is in.  I am skeptical because the house is assessed higher than the asking price.  What does this mean regarding taxes and why do people do this?
Thanks for any information!!!

Answer
No two states assess the value of their real estate the same. But in the main, most states assess the value of the property at a certain level, a level that not necessarily means that that is what the property is worth . . . up or down. In most cases, the property taxes are paid in two installments. The amount of taxes is based on the value of the LAST assessment, not necessarily when the property was last sold, like it is here in California. To understand how your state handles the assessment and taxes, just call your local county assessor and ask. They will be glad to answer your questions. I do wish you well.

Dick Dennis