Tax Assessment vs Market Value | Why is the Tax Assessed Value Different than the Sales Price?

Arlington, VA real estate agent and Realtor Matt Leighton talks about the differences between the tax assessment and the market value (sales price) of a property.

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Tax assessment (via https://topics.arlingtonva.us/realest...
Each year, the Department of Real Estate Assessments determines the value of real property in Arlington County. The assessment is then multiplied by the real estate tax rate, which is set by the County Board each year. Assessments begin Jan. 1. Assessors do not determine your property taxes; their job is simply to ensure that your assessment is fair and equitable.

Information on tax rate and assessments: https://budget.arlingtonva.us/

Basically, the 2017 Arlington VA property tax rate is $.991 per $100 of assessed value. So a $400,000 assessed property would have property taxes equal to $3,964.

The assessor usually doesn’t visually inspect the subject home or the comparable homes. So any updates are most likely not taken into consideration. They have their own calculation for coming up with the assessment. They simply look at the size of the home, the number of bedrooms and bathrooms, and if there have been any permits issued for larger renovations, that would affect the assessment as well.

Improvements and current market condition are not factored in. Occasionally, you might get a knock on your door from someone in the county real estate office asking to inspect the property for appraisal reasons but this is a very rare occurrence.

I think there is one way to look at the sales price and tax assessment that can help you out as you’re looking to make an offer on a home. And that is if two comparable properties come on the market. You can compare them to their respective tax assessments. So 2 similar condos in the same building come on and one is priced higher than the other…is the higher one also tax assessed for a higher amount? It should be. It could be a way to find out if one property is over-priced.

If you don’t like your assessment, you can file an appeal. Don’t complain to your friends and do nothing about it. Present your case and complain formally to your jurisdiction and maybe they will lower your assessment.

Video location: Penrose Square - Arlington, VA
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Matt Leighton - Arlington VA Real Estate Agent
Licensed in VA and D.C.
Century 21 Redwood Realty
1934 Wilson Blvd Arlington, VA 22201
   • Tax Assessment vs Market Value | Why is th...  
please note the obvious - Matt does not work for or is not affiliated at all with Arlington County.