Market Value Versus Assessed Value. What’s the Difference?
It’s important to understand what your home is worth. Knowing your homes value gives you an idea of how much you could receive if you sold the property. It also plays a part in determining how much property tax you’ll be required to pay. There are different valuations of a home’s worth and you should understand the difference between market value and assessed value.
Market value is used to determine how much a buyer would be willing to pay for your home. An appraiser determines market value and is usually hired by your lender. Market value is a vital tool in helping to decide what price to list a property for. Often sellers want to list based on what they feel a buyer should want to pay. However, it is better to list a property based on current market conditions. Market value is based on recent sales of similar homes in the area, along with other factors.
Assessed value puts market value in the context of property taxes and is based on the laws of the state or county in which you live. Assessed value is calculated as a percentage of the market value of the property. Assessed value is determined by an assessor’s office. Some offices have databases open to the public for you to see the history of your property, as well as what information what factored into its assessment.
Have more questions about your home’s value? Feel free to send us your questions! We are always willing to answer any of your questions so that you can feel comfortable with the home buying or selling process! Contact Us
