Mooers Realty Maine Real Estate Blog
Selling Your Maine Home, Is The Real Estate Property Assessment The Value?
The assessed value of your Maine home, the one you want to sell.
Is the property tax value that you receive a yearly or semi annual bill on the real worth of the place? For the sticks and bricks, land under it that you shell out money to avoid a property tax lien for lack of payment.
The money in property taxes used to keep the local schools open. To provide the patch for the road pot holes to keep them filled, smooth, flat. And for local Maine public safety folks chopping at the bit and ever ready. To spring into action in the 4th lowest crime state.
Memo to property owner: Don't rely on the property assessed value.
Or expect that figure, number to be up to the minute accurate, correct. It is not a current appraisal that reflects today's market sales and the listings available in it like your place. How come? Why is that?
And wouldn't it be nice if the assessment number, figure on the tax bill that the local town or city mill rate is paired with to come up with the property tax bill amount was always right on the money. For used if suddenly you need to borrow money. Or sell or buy a property and just wondering what is the actual value for the place.
Real estate valuation is a science.
You can not look up in a book like a used car buyer or seller can to arrive at value pretty quickly. Because the car is able to be repossessed and hauled back to the lot with a tow truck late at night for lack of payment.
A home in Maine is fixed based.
It's value tied to what is happening around it with neighboring properties. Good or bad that influence it's worth, value on the open market. Beyond the property lines. For buyers ready, willing and able to step out and purchase today. Not last year, not next year's real value. Today. Here and now. That is why a property assessment done years ago and pretty down and dirty fast, with a quick overall blast of a town. Coming up with some numbers to work with has a limited use. To pay the municipal bills the purpose. But that does not provide an up to date appraisal figure to run with that is fresh, valid, current.Not what the figure was designed for, why appraisers, real estate professionals have a job.
Today has a local fellow who's wife inherited a house along with her brother. The brother would like to buy the home place he grew up in. The sister does not share the same zeal, appeal for the place so let's keep it in the family. But what to pay for the place that is fair and reasonable. Each sides of the process could have a vastly different expectation on the number settled on for the purchase price. The what to pay could be easier to swallow if the doubt on how much or how little it will take was known.
So often when reviewing the property tax assessment, the bright light comes on and the family members think there is a number we can bank on as dead target centered accurate right? Not so fast. In my appearance, I have seen assessments of a town done in a revaluation sweep. And outside firm being the low bidder for the fast trip through town to put new values on each and every property populated the burg or village.
In one case I would estimate 25% of the assessments are up too high or missed the radar and fell short of the mark.
Or remained the same, untouched. Let's be real. If your property assessment is lower than the gut feeling you think the place is worth, are you likely to trot to the phone, dial up the local Maine town tax assessor?
And indicate you wished they would hoist the valuation so that you could sleep better nights?
Knowing the peace of paying your fair share in property tax bills sent to your address with your name as the owner being the end all goal. I don't think so. Nothing riles and shakes a person up quite like talk about gun control, politics, religion and property taxes being too dang high.
So in the case of this call today, have the place appraised to know the value for cash today. Or if there is special, attractive owner financing between the family members put in place, let's determine how those terms justify a higher price. To avoid the bank financing mortgage hoops to jump through. The repair this, update that nickel and dime items that come up during a Maine home, house real estate sale.
And if the family member buying does not like the real estate agent, broker, REALTOR's opinion of value, nor the licensed appraiser's study of the property and the current market, list it to sell.
To someone who does. Appraisals are opinions of value. And if using the same comparable house sales, if considering supply and demand and other market trends, the home valuation should come up the same. Even if several appraisers were called in for the job. Rolled up their sleeves to arrive at value.
So don't rely on the property tax value on Maine homes, houses to be the true accurate up to the minute worth of the real estate today.
Just like your home property insurance value is a flawed approach.
I have seen way under insured properties where the cost to fix in the event of fire would not begin to touch the rebuilding process.
And then replacement house insurance numbers with lots of zero places of coverage. To make the loss whole again like a duplicate of what was before the fire, flood, whatever the tragedy, peril.
So remember the replacement value is not the true worth of a place. Unless you are thinking of trying your hand at arson.
Or looking on Craig's List for someone good with pyrotechnics that could start a little smudge for you that would not end up with you and Sparky being in the crow bar hotel.
Making Maine welcome to Vacationland license plates for the three hots and a cot. And HBO in the activities room if you behave.
Tax valuation, actual real estate worth...not the same magic number.
Maine, big state, more space, friendlier people and plenty of common sense used daily. All year round. not just occasionally. Off and on or hit or miss.