If our property assessment is lower, we pay lower property taxes. But if our home is assessed lower, will it tend to sell lower? Off hand, I’d think not. But now I’m wondering. Is there a tradeoff here? And which way lies the advantage? Any help?
Selling price is based on what someone will pay to buy the house. It has no actual connection to the assessed value.
Government assesors try to keep it related to the actual market value of the property, but it almost inevitably lags behind the changing market value. And it tends to lag lower: if house prices are dropping in the neighborhood, and the assessed value is high, homeowners will appeal the valuation to the tax adjustment board and get it lowered; but if house prices are going up, and the assessment is low, nobody complains and asks to pay higher taxes.
Having an undervalued assessment is indeed an advantage to you, in that you pay lower taxes, and potential buyers will also commonly ask what the annual taxes are, and the low figure may encourage them to buy. (In most jurisdictions, the advantage won’t last: since the sales price recorded with the title transfer generally triggers an adjustment to assessed value, their taxes will go up next year if the sales price was up.)
this was exactly the straight dope I sought.