Difference Between Assessed Value and Market Value

Difference Between Assessed Value and Market Value

Welcome to Ask the Colorado Dream House Team with Dan Polimino. Today’s Dream Home Spotlight is a penthouse with breathtaking views at 955 Eudora St in Denver, Colorado.

Today’s Show:

Price reductions and what to do before the end of the year.

The difference between assessed value and market value.

What happens if you finish your basement and didn’t pull a permit?

Full Transcript

00:02                                     Hi everyone and welcome to today's show of Ask the Colorado Dream House Team. I'm your host Dan Polimino coming to you live from Denver Colorado and the

00:10                                     Weather today is a little dark and gloomy. We got a storm coming in and we are each and every day kind of feel like winter is just around the corner so I hope you're hunkering down and getting ready. Well wherever you are in the country what we talk about here on the show every week on Tuesdays and Thursdays is real estate how to buy sell and invest in real estate. And again the information that we're giving you works anywhere in the country comes from thousands of transactions and years of experience. So take it and use it as you need it. But thanks for tuning in. As always you can leave a comment right here on Facebook. You can e-mail us at Team Colorado Dreamhouse dot com or you can give us a call at 7 2 0 4 4 6 6 3 2 5. We'd love to help you. Or we just have to be happy to answer any of your questions. Two things we like to cover every show we want to give you a little market information and we also want to answer your questions.

01:07                                     So let's start with the market information. Halloween is next week right. December or October 30 first and December 30 first is just two months away the end of the year. And if you haven't sold your house with two months to go. What do you do. Answer. Bite the bullet. Probably make that price reduction that you have been holding off on. We've been having this conversation with a lot of our sellers now. Listen I'm not going to pretend that a price reduction is just the be all cure all for selling your home. You may have more you know powerful factors at play and why it's not selling you might back to a busy road you might back train tracks or a power line have a bad location issue. The house may be in really disrepair it doesn't show very well. There's a number of reasons why the House hasn't sold.

02:00                                     However. In a lot of instances price can overcome those obstacles because there is a sweet spot a price in which somebody will say to themselves you know despite this or that the houses price so well that I can't pass it up. And so in that instance price does cover a lot of ills. So if you've been holding off on the price reduction. Do it now. And here's why. Because when November first comes along. A standard amount of time to close a transaction is 45 days. These days with a loan rate loans usually are going 45 days. Sometimes they can be done in 30 but 45. So if somebody gives you a contract on November 1st they're closing around December 15th. Nobody wants to close during Christmas. Are you going to close before Christmas which means you got to do the price reduction now to entice somebody to give you an offer the first week of November.

03:03                                     Make the change. Now if you want to get your home sold before December 30 First obviously it goes without saying it would get into the winter winter months. Here in Denver. Sometimes it's more challenging to sell a home in January February or March just depends on how much snow we get and how cold it is. So again it may behoove you to get it sold before Christmas and then for some people for tax purposes as well. OK. That's the market information for today. Let's go to your questions. The Colorado Dreamhouse team how much do I have to disclose about the sale of my house to potential buyers. Well. Let me tell you. Everything.

03:45                                     Right. If you really want to stay out of trouble you want to stay out of legal jeopardy. Disclose disclose disclose. You can't really disclose too much when you get that form. Fill it out fill it out honestly. I hear people say all the time. And asked me if I got a roof leak. I don't have a roof leaks so I checked no. Then it ask Did you ever have a roof leak. And if you did at some point even if you fixed it and it never leaked again. Disclose disclose disclose the number one lawsuit in real estate is when a seller. Failed to disclose information on their seller's property disclosure. OK. Do you have a dream house team. What's the difference between assessed value and market value. Well most of the time they don't they're not the same the assessed value comes from the county they are giving you a value multiplied times a tax rate.

04:47                                     And that's how they're coming up with your assessed value or how much taxes you're going to owe on that property. In my case my assessed value is considerably lower than my market value my market value is determined by comparables of similar size and quality that have sold in my neighborhood. So don't get freaked out when the assessed value by the county is different from your market value. And in my case if it's lower. You're happy because you're paying less taxes. All right. The Colorado dream house team. I finished my basement but I did not pull a permit. Will that cause a problem when I go to sell my home. You know about half of the people don't pull a permit.

05:32                                     I mean you should. I know why some people do they don't want to go through because they don't want to go through the hassle and they don't want the county knowing about the extra square footage because if they did they would tax you on that extra finished square feet. But if you didn't pull a permit Listen there's nothing against the law that says you can't finish your basement on your own. If you're handy and you're capable you can. However it's probably a good idea to make sure that everything was done to code and in that case you might wanna pull a permit. I would encourage you to do so now if you're selling your house and you didn't pull a permit. You know they'll be a buyer that may have a problem with that he may want you to go back and have an inspector go through the house and check to make sure it was done the code.

06:21                                     In most cases again you shouldn't have a problem selling the house obviously to finish where feet is there. Even though the county doesn't know about it and it'll really come down to what you negotiate with the buyer and the seller. All right. Hope that helps. Real quick. Couple of weeks ago about a month ago we told you about a new property we put on the market. If you're in Denver and you're on Colorado Blvd and you know where the old Colorado Health Science Center was they tore that old hospital down and that whole area is being redeveloped and right next to there is. This terrific penthouse 9 5 5 Eudora's Street unit 18 0 4 It's the top floor. It's about 20 100 square feet two beds three bath.

07:08                                     But the views are amazing. Absolutely to die for. You've got you've got not one but two terraces looking in two different directions. So you've just got incredible views. We just had a$30000 price reduction. So it's now priced to sell all right at five ninety nine. So check it out. Nine five five you dog go to Colorado Dreamhouse dot com forward slash Eudora and I think you'll like it. All right. Well that's it for this week. We're back again on Tuesday everybody have a great weekend.

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