So many sellers asking WAY ABOVE assessment value, how does that work with getting a morgage?

[Anonymous]

When they do an appraisal if the asking price is way above tax assessment how does that impact getting a mortgage?

[Anonymous]

Tax assessment is not used for mortgage.

Lender tries to find their own assessment value and that's based on market price.

[Anonymous]

Appraisal for mortgage purposes is based on comps, not the tax assessment. If the list price is way over the appraisal you might have to make up the difference in cash.

[Anonymous]

Anonymous wrote:Appraisal for mortgage purposes is based on comps, not the tax assessment. If the list price is way over the appraisal you might have to make up the difference in cash.

This. Added context is whenever you see a house sell for significantly over lots of times those buyers have to make up the difference with cash. It’s another piece of the puzzle that makes winning a house so hard around here.

[Anonymous]

Tax assessments notoriously lag market value. Typically by a fair amount.

[Anonymous]

Assessment is meaningless. My parents’ multimillion dollar place in Rehoboth was assessed at 70k because the assessment hadn’t been updated in like 50 years.

[Anonymous]

The appraisal will almost always come in higher than the tax assessment, and if the appraisal is lower than your offer, you have to make up the difference in cash.

[Anonymous]

You have a bigger down payment.

[Anonymous]

Tax assessment has no actual relation to market value. Full stop.