The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Ricky on August 05, 2015, 09:25:44 PM
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Does assessed value on a property by the government always increase up to the sales price after the home is sold? I thought this was the case but then I'm looking on Zillow and seeing homes that sold and the tax value is still much lower than the sales price.
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Some places define the taxable assessed value as some fraction (e.g., 50%) of the selling price or true cash value of the property.
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Does assessed value on a property by the government always increase up to the sales price after the home is sold? I thought this was the case but then I'm looking on Zillow and seeing homes that sold and the tax value is still much lower than the sales price.
Zillow doesn't always have the most up-to-date data. And sometimes tax assessors don't update things until mid-way during the following year. So if a sale happens in 2015, the tax assessor doesn't update their valuation again until the 2016 cycle and that valuation may not get finalized until after the period where they allow homeowners to appeal the valuation, etc. So it could easily be more than a year between the sale and the updated property tax figures.