Question: My friend told me that my home is
only worth $330,000 based on the assessed value. Properties have been selling
for a lot higher around here. She said her tax bill indicated this low value.
Am I missing something?
Answer: I’m sure your friend is a wonderful
person and knowledgeable in many areas, but not in real estate. A home's assessed value is set by the
local government to calculate property taxes, while market value is the actual
price the home would sell for on the open market. Assessed values often lag behind
real-time market changes and are frequently lower than the actual market value.
The main use is figuring out yearly
property taxes. It’s set by local government tax assessors. They use mass
formulas and historical sales data and often represents a fixed percentage of a
home's value. Assessments are updated periodically (such as every year or a few
years). Improvements you’ve made to your home, in between assessments, will
certainly add to the assessed value.
Market Values Main Use is for Buying,
selling, or refinancing a home. It is set by Real estate buyers, sellers, and
agents.
It is based on current buyer demand,
local competition, the improvements to your specific home and recent sales of
similar homes. If your home has market appeal, it will demand more value.
Market value changes constantly based
on real-time market behavior.
Website: www.Cathyhiggins.com
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