Tax Assessed value vs. List Price

[Barbie Melendez]

I am looking to purchase my first small multifamily in the Newburgh, NY, area.  I set a goal to analyze at least two properties a day.  This property is two units with a list price of $179,000.  The tax assessed value is $85,200 (2020).  I know the RE market has grown exponentially.  This property sold for $36,000 in 2002.

Is it normal for the tax assessed value to be significantly lower than the list price?

Will that affect me in anyway if I purchased it?

[Jason Bohling]

@Barbie Melendez how states come to the appraised value varies widely all across the country. In Idaho where I’m at for example, the state requires that homes be assessed at 100% of market value, however it’s always lagging what you would actually pay for the home on the open market. My home for example has an assessed value of $340,000 but if I were to sell it, it would most likely appraise and sell at $440,000.