So is there a general opinion anywhere that next summer might be a better or worse time to make a move than this summer?

As I said, I'm guessing that now is a great time for first time home buyers. But, since I'd have to sell in order to buy, the same doesn't hold true.

I make that statement based on this period in the market.. most of the assessed values are based on what the market was doing and not its current state.

I just bought a house from my parents and they had a licensed appraiser say it was worth 162k and the "assessment" on the house had it for 188k...

just passing along my nugget of experience

Only use realtors who sell TONS of stuff. 99% of them are useless idiots. Make sure they give you a very professional presentation, and keep in mind that the majority of what they're telling you is a lie. The only way they make money is if you work with them, so their motivation isn't you, it's your money. Get the pros who present themselves that way and have a huge track record of doing exactly what they're telling you they'll do.

I would also plan on the sale of your home taking awhile, and getting more now than I would next year. The market is on the way down, and the end is much further away than "a few months."

When you buy, especially if you want a new home, find homes by builders that have gone bankrupt. Offer the bank that owns the property a very fast close for a huge discount. A discount on % basis, not $ basis. Personally if I was looking in the $250,000 range I'd either be looking for a $400,000-$500,000 home, or spending about $125,000-$150,000 on that $250,000 house. You need to be flexible if you want to do that, so if your perfect home is more important than one that's almost perfect but way cheaper, or way bigger and better, then disregard what I said. Homes aren't investments, they're where you're going to live and your personal satisfaction is far more important than the return on your money. But if you can get a big return on your money and enjoy the crap out of it all the better!

So in other words, my city is claiming that my house is worth more than it really is?

Kitchen, master bed and bath have great return on your money but that's still 80-90% right now. If you're getting out soon, and like Donger said it doesn't increase your value over 80 - 90% save that money for your next place.

Yes. They get more money from you that way.

Not necessarily. It sure as hell doesn't work that way here in Omaha. Check and see if your county assessor has a website, most of them have one where you can find out assessed values of any home and the sale price of homes that have sold recently.

Wait until the market has bottomed. If you're looking at buying a $250K home and selling a $180K home you'll be far ahead when the market drops another 10%. There's a reason prices have dropped (credit crunch, stoopid buyers/banks), so be patient and you'll be glad you did. Cramped quarters aren't so bad when you can save several $1000's.

It really depends on where you live, the current housing market, etc. The tax assessment is based on prior sales price.

So if you bought your home for $150k, the city will begin assessing property taxes roughly around that figure. The city will increase the tax ever so slightly on a yearly basis. In Los Angeles, it's .012% of the sale price. If you don't know, you should check with your accountant or with the city as to the actual assessment tax.

As for the current real value, as many have mentioned, have a reliable agent give you comps in the neighborhood. Only then will you know the true value in the current housing market in your area. There could be many factors involved that could make the value higher, lower, substantially higher or substantially lower than the city's assessed value.

Just be sure to pick THE best realty agency in your area. Otherwise, it's really a waste of time. No one likes cleaning the house every Sunday only to have 2 people show up.

Good luck!

Again, not necessarily. I wish they did that here, but instead they'll leave it alone for years and then nail you with a huge valuation increase. My valuation jumped from $116K (the same it had been since I bought it in '99) to $144K last year.

I've been a real estate investor since 1995, and I've bought, sold, and held several properties in up, down and flat markets. I'm saying that only so you know where I'm coming from.

To answer your direct questions:

There is no important correlation between assessed tax value and sale price. The county isn't looking to buy your house, so their opinion of its value doesn't matter. The only thing that matters is the price that a willing buyer will offer for the property.

Don't spend $20K on improvements with the hope that you'll get it back a year from now. If you can spend $10K to gamble that it will increase your home's value by $20K, go for it, but don't count on it. If you want to sink $20K into the home, you'd better be relatively certain that you are making improvements that will get you $30K at least. You don't want to lose money on improvements. Hell, you don't want to break even. There's an enormous amount of time that you'll spend in improvements, even if you're not doing the work yourself.

If you aren't a home design and construction professional, you'd probably be better off saving the money. Still, you'll have to make sure that the home looks its best when it's time to sell.

All real estate decisions should be based on local information and immediate timing. There's no way that anyone could answer this question.

I originally had Los Angeles in my reply, then re-worded and forgot to mention that.

That's a drag.