Market Value vs Assessed Value of Your Home

Why it’s Important for Home Sellers to Know the Difference

If you’re wondering what your current home value is than make sure not to confuse it with your assessed value. The main difference between the Market value vs Assessed value has to deal with taxes. The market value is the agreed upon value that an informed buyer and seller agree upon. The assessed value is dollar amount a tax assessor assigns to the property to determine property taxes. For homeowners, the assessed value is a double-edged sword. Because, if their annual assessed value increased then their yearly taxes will also be raised. On the flip side, when selling a house it can help boost its market value.

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Market Value

The Market Value will have many things that impact the value of your home. For example, if we’re in a buyers market or sellers market, the condition of the home and more. Some other things that may impact the market value and is important to understand as home sellers. Is the List Price and Purchase Price as you decide what to list your home for to attract buyers and as eventually what it sells for with the purchase price.

Assessed Value

In many counties throughout the U.S., assessed value is a portion of the market value, calculated as a percentage of the market value of the property. As a result, the assessed value of a property is typically lower than appraised market value. So if you’re looking at the assessed value of your home and wondering why it looks different than the recent comps or CMA your realtor provided than this is why. As you go to market to sell your home don’t confuse your assessed value with your market value so you understand what the real market price is.

Depending on your location, a municipal or county tax assessor will evaluate several factors, including any improvements you have made, whether you make any income from the property (from renting out a room, for example), the replacement cost of the home if it were destroyed and how much similar homes in the area are selling for per Forbes.

Summary

As you go through the selling process Home values will be impacted by the type of your market you’re in. But if you have a good realtor selling your home should be a smooth process. To request a CMA or comparative market analysis which will help determine the real market value of your home visit our Home Value Request Form on our website. If you have any questions about the value of your home reach out today 702-945-3264, Alex Juarez Realtor S.0191493.

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