County Assessor Value vs Fair Market Value

[Devin Drowley]

I'm just getting started out in Chicago and am wondering why there is such a disconnect between the county assessor's value and the market value of properties.

For example, I've looked at several MFHs on the market in the mid $400k (with close comps), but the county assessor value is closer to $200k.  Why would there be such a disconnect? How should someone interpret this information? Does this just mean I should account for a big tax hike if the property gets reassessed, or are the listing prices just too high?

Thanks for any help/guidance!

Devin

[Crystal Smith]

Originally posted by @Devin Drowley:

I'm just getting started out in Chicago and am wondering why there is such a disconnect between the county assessor's value and the market value of properties.

For example, I've looked at several MFHs on the market in the mid $400k (with close comps), but the county assessor value is closer to $200k.  Why would there be such a disconnect? How should someone interpret this information? Does this just mean I should account for a big tax hike if the property gets reassessed, or are the listing prices just too high?

Thanks for any help/guidance!

Devin

My daughter was in a civics class & they were discussing the potential for property  tax hikes in Illinois.  So she asked me the difference between Assessed & Market Value.  Here you go:

 Assessed Value Definition:

Assessed value is the value of a property as of a certain date (usually January 1st) according to the tax rolls of your local government jurisdiction (county or city). This value can be higher or lower than market value based on the assessment ratio, which is a percentage of market value.

What is an Assessment ratio? The assessment ratio is the percentage that each state uses to determine the property taxes. 

Bottom line @Devin Drowley; don't use the county assessor's office to determine value.  Values are determined by the market place which you can only get from recent sales comparables.