My clients are always asking if tax assessments are a good indication of market value. Here's a little bit of what you need to know when you're looking at comparing these two numbers.
First off your tax assessments is the market value assigned to the property for July 1st of the year before you get them, so that's should be about what the market value was last summer.
In the past year I've studied the numbers twice and both times they indicated they were right usually within about 97.99%. However, I've seen differences as big as 30%, so it's not a hard and fast number that you can look at.
The other thing you need to think about is what the market's done since that number was produced. This year April and May were kind quiet and things went crazy since then. So last year's numbers I expect are below what your sales price should be. But again on a case by case basis it depends on the property and what the taxation authority knows about it.
Another thing to consider is that the date for filing to request a review of your assessment is coming up.
It's February 1st this year, I think it's usually January 31st. So if you want to talk to the tax man you'd better get your phone call in!
If you're looking for an idea of what your house might sell for in this market give me a call. I'll give you an idea of what's happened since July of last year and bring you up to speed on what the market's doing.