What is the Difference between Sales Price and Assessment Price?

Time To Buy?

The reversal in recent mortgage policy means the market is better positioned for a turnaround, according to the National Association of Realtors. When the TARP package passes Congress, we should see a boom in the economy that will transgress on into new housing investments. Purchasing a home while interest rates are extremely favorable and homes are now valued incredibly well makes the perfect storm for purchasing your new home. Why would you want to wait until things inflate again? Bubbles have a tendency to wax and wane. This downside of market values will turn one of these days and we will see higher housing prices as well as increases in interest rates if inflation creeps back into the mix again. CALL ME to discuss this further!

Here is one of the most commonly asked questions at Assessment Notice time:

We recently purchased a property for $250,000. Why is it assessed at $265,000. This could be due to a couple of reason:

First, the motivation of the buyers and sellers can affect sale price. Therefore, when very similar properties are sold during the same time frame, a range of sale prices can result. The market value assessment reflects sales in the middle of this range of prices. As a result, the assessment could be higher or lower than a specific selling price.

Second, market values may have changed between valuation day and the date you made your purchase. For example, in some price regions in Red Deer, market values have increased since January 1. If this has happened in your area and you have only recently purchased your property, it is possible that your assessment, while representative of your type of home 3 or 4 months ago, will be lower than your purchase price.


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