Assessed Value

Q: I have been looking to buy a property in Provincetown. Can you explain to me what the Assessed Value of a property is and how that relates to the actual value of the property?

A: When you see a figure for the assessed value, this number represents a value for the property that the tax assessor has placed on that property. It is the number upon which a property owner’s taxes are based. The tax assessor arrives at this value by relying upon information from the property owner or by actually inspecting the property. Sometimes this figure is very close to the market value of the property and other times it may be quite different.

For this reason, we suggest that you not place too much weight upon this figure in your search. A more accurate measure of a property’s value is an analysis of similar properties that have sold within the past six months. When you have narrowed your search and you arrive at a property that you would like to pursue, ask your Buyer’s Agent to run a report for you of COMP SALES. This will be the more helpful to you than the assessed value in deciding what to offer for a property. 

Remember, a property is only worth what someone is willing to pay for it, and an examination of comparable sales is most helpful in figuring out what a property is worth.