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What is the difference between sales price and assessed value?
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If you are looking to buy real estate in Aspen or Snowmass you will be able to look up the assessed value on the Pitkin County Assessors website. The assessed value is used to determine the property taxes for each property in Pitkin County. In combination of the Mill Levy (a sort of tax rate) the absolute Dollar amount of your property taxes are calculated. The assessed value is no indication of price or value of a property. It is used to find a common and equal basis from where to determine the relative values of all properties to each other. Theoretically the ratio of assessed value to market value should be equal for all property types in one county.
The sales price is driven by market value. This again is determined by supply and demand factors , which in turn are driven by interest rates, the unemployment rate, future expectations of appreciation and many more widely divers influences.
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