QUESTION
What is the relationship between assessed value and market value as seen on platforms like Zillow or Redfin?
1:00:48
·
86 sec
The council member asks for clarification on the distinction between the assessed value used by the city and the market value shown on real estate listing platforms like Zillow or Redfin.
- The deputy commissioner explains that assessed value is different from the market value on such listing sites.
- Assessed value refers to the value determined by the Department of Finance, which is separate from market value in the private market.
- Assessed value is lower than the potential selling price someone may get for their condo or co-op unit.
- The associate commissioner notes that assessed value is more stable and predictable than market value, which is why some housing programs use it.
- The council member requests a formal definition of assessed value versus market value for the record.
Pierina Ana Sanchez
1:00:48
I just first wanted to pick up on your question about assessed values, and I know you said deputy commissioner, you would follow-up.
1:00:54
But can you just remind us of the relationship between assessed value and market value, the market value some you know, someone from the public would see on Zillow or Redfin?
Lincoln Restler
1:01:04
Mhmm.
Kim Darga
1:01:05
So I'm not an expert in DLF valuation.
1:01:09
I will just say that first and foremost, but there is market there's market value out in the market.
1:01:14
There's DOF market value, and then there's the Department of Finance's assessed value.
1:01:19
Right?
1:01:20
So what we're talking about here is assessed value, which is certainly not the same thing is, like, if somebody's going out and selling their condo or co op unit, what they potentially are going to get Correct.
1:01:31
So I can't speak to the methodology that DLF uses.
1:01:34
I'm sorry.
Pierina Ana Sanchez
1:01:35
Okay.
1:01:35
Well, I know it's a fractional amount.
1:01:37
I
Kim Darga
1:01:37
it is a fractional amount, which is why it seems shocking that you would have actually a sizable number of coop and condo units with assessed value under 45,000.
Lucy Joffe
1:01:46
And I'll just add, it's generally more stable.
1:01:48
And so when we talk about sort of having programs that are really people can predict, right, if you think about it, market value changes much less predictably.
1:01:57
And so there is a reason why some of these programs are designed around assessed value, though it doesn't always feel as clear to other folks.
Pierina Ana Sanchez
1:02:02
Yeah.
1:02:04
Not to shout out CLA, but can can y'all phone a friend and just so that we can read into the record that definition of assessed value versus market value?
1:02:12
Thank you.