The value of your home is an important part of your total net worth. It’s the amount of money you would likely receive for selling your home in the current state of the real estate market. Market Value and Assessed Value are big factors in determining the amount of property taxes you will pay.
“Depending on where you look, the value may appear as wildly different numbers. Different valuations can mean different things and are often used for different reasons. The two types you’ll most likely encounter are market value and assessed value.”
Your home’s Market Value is an estimate of what buyers would currently pay for your home. Market Value is determined by an appraiser. Most homes are appraised when the lender is determining your loan amount or before listing the house on the market.
The gray area in terms of market value is deciding whether the value you assign to your home is based on what the current market says the buyer would pay or based on what you believe they should pay. A local appraiser will be able to determine your home’s actual market value based on factors like recent nearby sales and current market conditions.
Assessed Value is used to determine how much you owe in property taxes. While it takes into account your home’s market value, Assessed Values are affected by state and local laws that dictate how the number is determined.
“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.”
“Many assessors’ offices keep online databases open to the public that allow you to access information on the history of your property – including the deed from previous sales – and information that factors into the assessment of your property.”
Source: U.S. News – Read Full Article
Stachel Law’s real estate clients include lenders, brokers, investors, consumers, sellers, and real estate agents, all of whom are counseled and represented throughout every step of a legal matter. The firm provides clients with extensive experience in complex real estate transactions and litigation.