Do not be fooled into thinking that the county tax assessed value has anything to do with what a property will sell for.

There are differences between market value, assessed value and the appraised value. One of the biggest things to avoid when determining how much to offer for a home is using a home’s tax assessed value as an offer price.

The assessed value of a home is used for one thing and one thing only: to determine how much the property taxes will be. Assessed value has no correlation to a home’s market value, even though the County statement may well have used the term ” Taxable Market Value”.

There are many real estate markets where the County tax assessed value of homes will be significantly lower or higher than what homes are selling for.For example, 92% of recently sold similar 4 bedroom, 2 bathroom, 2 car garage homes in a Baxter MN development sold for prices above or below their assessed value. So to look at it from the other angle- only 8% of the time for that study was the Taxable Market Value the same as what the property sold for.

To sum this up- the best way to determine what a good offer price would be on a property that you have a strong interest in is to work with a knowledgeable REALTOR@ who has the tools and available information to guide you.