What is the difference between market value, appraised value, and the assessed value of my property?
Market value is what a buyer is willing to pay. That is dictated by the market. If there’s a lot of supply and low demand, of course, that’s going to be less, but what we’ve seen in the last few years are high demand and low supply. So that’s been bringing up that market value for people.
The appraised value is the value that the real estate appraiser gives your home, hired by your bank for your loan approval. They typically take three to six comps that are remotely comparable, that have closed in the last six months, and they do adjustments. Very specific adjustments, based on age, square footage, bedrooms, and condition are needed to give the home one value.
Lastly, the assessed value is done by the municipality where you live. The assessor will come out usually every few years, whenever the municipality is doing a reassessment and they give your home a value. A lot of times they don’t get into your home, especially if you’re not at home and if you don’t make an appointment for them to come in and see your home. Then sometimes they’ll just do a drive-by assessment and they’ll mail you a form stating what your new assessment is. If you have any concerns about it, then you can call them and schedule an appointment for them to walk through.
Your assessed value it’s not market value. Every municipality is a little bit different. Some have higher assessments, but their mill rate, their tax rate, is lower. So that balances things out too. If you’re looking for a true value of your home, it’s really market value, and reaching out to a local real estate professional in your market is a great way to get good information.
What’s the difference between market value, appraised value, and assessed value? Laura Flood goes through all three to make sure a buyer or seller doesn’t get confused during the home buying/selling process. Click here to watch our Real View of Real Estate series: https://youtube.com/playlist?list=PLi… If you want to schedule a confidential call with Laura, reach out to us on our socials (@laurasrealestategroup) or visit our website, LaurasRealEstateGroup.com to get started.
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