large disparity between list price and value for tax purposes?

[Anonymous]

I know that valuation for tax purposes doesn't move in lock step with prevailing sales prices, but what would you make of a large (about $250k) difference between them? It's a neighborhood with little turnover so there aren't any comps and it's been on the market for a while, so I'm wondering just how out to lunch the seller is or whether I'm not thinking of something.

[Anonymous]

Tax assessors dont go into homes when they make their assessments. Could be that the house is super upgraded inside. also, many times the assessment on a home is sometimes very low when the house hasnt changed hands in a while.

[Anonymous]

(OP here) Hmm. You might be right. It needs a lot of updating and renovation, so that's not it, but I think the seller's owned it since forever so that could be it.

[Anonymous]

Could also have been an exoansion and not an in cycle reassessment.

[Anonymous]

Don't assume you'll inherit the tax assessment. If you buy it, it will most likely reset to at or near your purchase price.

[Anonymous]

There is a maximum percent the tax assessment can go up each year in MoCo. If the owner has been there a long time, then the tax would be artificially low. It gets "reset" when it chantes hands.