One of the biggest myths in Real Estate, at least in Massachusetts, is that the assessed value and present market value on a property are the same.

Looking at assessed values is no better then using Zillow.com to figure out what a home is worth!

When the assessed value from the town is higher than the property present market value you will often see advertisings that says something like this: “Come see this bargain home that is priced $80,000 less than the assessed value”. What this tells me is that this person either does not know anything about property valuation or they think there will be someone that will believe the home really is a steal. Someone that knows better is going to be thinking the property has been over assessed by the town and the seller has been paying too much taxes!

Of course on the other hand you will see home buyers who see a home listed higher than the assessed value and will improperly use this as part of their negotiations when making an offer. If more people were better informed they would know that assessed values are a worthless piece of information when evaluating what a property is worth.

Most people realize that market values of homes in many parts of Massachusetts and all over the country have dropped over the last few years. As values were dropping many people believed their taxes would also be coming down too. People automatically came to this conclusion by misunderstanding that assessed values and fair market values were the same.

The assessed value of a property often falls behind the market because the valuations are not re-calculated until the beginning of the next calender year. So if the market values of homes are dropping it is not unusual to see the assessed value being higher. As well as if values are going up it could be just the opposite.

In summary an assessed value is the valuation placed on a property by a public tax assessor for purposes of taxation. Fair Market Value is the highest price which the property will bring when it is for sale on the open market to a buyer who is purchasing with full knowledge of the properties highest and best use.

10 cities where prices are rebounding

By Michael Kling of Investopedia

Seventeen metro areas in the much-watched S&P/Case-Shiller home-price indexes saw price increases from July to August.

Home prices in both the 10-city and 20-city composite indexes and all metro areas except for Cleveland either improved or fell more slowly. Charlotte, Cleveland and Las Vegas were the only metro areas to see monthly price declines. The 10-city index fell 10.6% and the 20-city index 11.3% from 2008 levels.

The numbers may not sound great, but they're a great relief from the plummeting prices of 2007.

"Broadly speaking, the rate of annual decline in home-price values continues to improve," said David M. Blitzer, chairman of the Index Committee at Standard & Poor's. "While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. California, in particular, has seen some real positive prints in recent months."

Economists credit lower home prices and low interest rates with drawing buyers into the market. Lenders say the first-time homebuyers' tax credit, a credit of up to $8,000, has helped.

1) Minneapolis

2) San Francisco

3)Detroit

4) Chicago

5) Phoenix

6)San Diego

7) Los Angeles

8) Washington DC

9)Denver

10) Seattle

Luis D Roque

www.hisrealestatenetwork.com