The headline around the world is that New York City has imposed a pied-a-terre tax on apartments worth $1 million or more. This is a grossly false and misleading headline and narrative and highlights many problems of our time.

The tax, which I hate (as it further pits states against states) is applied to apartments with NYC Government market value of $1 million or more, not real world market value. These apartments would be worth 4-6 times more in the open market. Why the media is omitting this not-so-minor detail baffles me, yet we probably do know why.

But more importantly, The NYC Department of Finance’s "market value" differs from the real-world sales market because it is a statutory tax calculation tool rather than a live appraisal. The city uses mass statistical modeling, legal caps on value increases, and artificial formulas (like valuing co-ops as rentals) to stabilize public revenue and phase in tax changes.

This further highlights how all those algorithmic valuations we see are mostly inaccurate. It also highlights the massive disparities in how homes are valued by governments and other entities via formulas and other means that are removed from reality, akin to the dreadful Zestimate that even the ex-CEO of Zillow stated was a "starting point", a powerful and provocative engagement driver, which others might simply term a ruse to get your attention? Click-bait?

So as of today, I want to promote the following concept: The BESTimate. The BESTimate refersreferes to what we do as agents every day. Visit homes physically, study everything that exists and has been done to the home over the years, evaluate upgrades, condition, renovations, similar market sales and signed contracts, competing properties, etc and only then assign a market valuation range to that property. This is the best way to value homes, not Google-earth-views from outside or above. Or valuations derived purely from sales data. Or AI. This is specific and best.

The BESTimate. It truly is the best way!