Home owners in our area whether they are selling or not should be aware of the widening gap between the assessed value of their homes and the market value of their homes.  In order to understand the problem we must first understand the difference between the two values.  It also helps to define a context for what real estate value is.

Real Estate Value:  A subjective opinion based on empirical evidence created for a specific purpose.  There are really 3 basic types of values to define; Assessed value, Appraised value and Market value.

Assessed Value: Value placed upon a home by the town assessor for tax purposes.  These numbers are created and used to raise the tax revenue used by a town to operate.

Appraised Value: The value assigned to a home by a licensed appraiser, usually done when a mortgage is being created and the property is being pledged as security for a loan.  May also be done electively by a homeowner for a fee.

Market value: The price a ready willing and able buyer will pay for a home at any particular moment in time.

The problem that we are seeing now is that the assessed value of homes in the area, in general, is higher than the market value of the home.  The result of this is twofold; first homeowner are paying more in taxes than they should be and secondly, homeowners may believe that their homes are worth more than the market value, making them difficult if not impossible to sell.

In my next post I will examine the ramifications and solutions to this vexing issue.....

To see what is on the market or request an opinion on the market value of your home visit:

http://www.weichertrm.com