Assessments are out. The media is reporting that house values are down. There is much wringing of hands and gnashing of teeth out there. And every year at this time I have the same message.
It doesn't matter.
Assessed value is not market value. Assessed value is not market value. Assessed value is not market value.
Not only that, but assessed value is based on information gathered from July 2 2012 to June 30th 2013 and is meant to refelct a market price as of July 1 2013. So not only is it generally wrong and a terrible metric to try to use but it is out of date the second it is issued.
There is only one use for assessed value, and that is in the establishment of municpal property taxes. That's it. There is one client. Anyone who is using assessed value as an actual metric in determining the current market value of a property is, very simply, out to lunch.
Annual rant over.
Happy New Year!