The Disconnect of Tax Value and Real Estate Prices in Murphy NC and Cherokee County

When folks look at their tax value of their real estate in Cherokee County (which encompasses Murphy NC, Andrews NC, and many others), it looks awfully good – if you sell it for that price, that is! However, there’s a substantial disconnect of what the tax assessed value vs. the price real estate is actually selling for.

When we do a market analysis for a prospective seller on a piece or real estate, we use many different approaches to come to a final valuation to determine what we can expect the home or land to sell for in today’s real estate market. One of many things is the tax assessment value.

We’ve been tracking what homes actually sell for vs. their assessment value. We’ve found that, on average, homes are selling for 70% of their tax value. For example, that means a home with an assessment of $100,000 sells for $70,000, on average. Although it amazes me how accurate this can be in a substantial amount of homes, we still find “outliers” where this doesn’t apply. For example, land can fall way outside these parameters in either direction. One large factor is how long the owner has owned their real estate. I’ve noticed the longer a property is owned, say 30+ years, the values tend to be closer to the market value. There are also other factors as well.

As we speak, Cherokee County is working on the new re-evaluation of all the real estate in the county. This is a massive undertaking! To ensure they are as accurate as possible, they have hired an outside and unbiased appraisal company to help hone the values. The new evaluation is scheduled to become “active” on January 1st, 2012. It’s very likely residents and property owners will be notified of their new evaluation a few months before it becomes active.

Are you thinking, “Sell my house!” or “sell my land!”? Let Murphy’s #1 Real Estate Team help you! We’re always here to help guide you through the entire process. If you’d like to know how we’ve worked for clients like you? Be sure to check out our testimonials. Contact us today! 😀

John Poltrock – The Poltrock Team at REMAX in Murphy NC – Murphy’s #1 Real Estate Team – – – – Call Toll Free at 1-866-Murphy-NC or 1-866-687-7496