Assessed Value vs Market Value - What is my home really worth?
I am often inspired by what others write or post and I saw this online and thought it was a great idea for a blog.
I often get asked about the difference between assessed value and market value, especially by first-time buyers who don't understand how the two work.
The assessed value is used to calculate property taxes and is determined by an assessor. Homeowners prefer it to be low so that the property taxes they have to pay are lower.
The market value, on the other hand, is how much your home is worth currently on the market, or how much someone would be willing to pay to purchase your home and this is supported by an appraisal value which is determined by an appraiser who is retained by the bank lending you the money to purchase the home. If the buyer defaulted on the loan would the bank be able to recoup what they loaned if the property was sold? Home sellers prefer this value to be higher so they can acquire the equity (the difference between what they owe and the sales price).
If you are curious about the market value of your home, feel free to email, text, or call me. I'll be happy to help you. Nothing creates generational wealth like real estate, you use it, pay for it and if you and your realtor have worked well together your home will continue to appreciate in value creating wealth for you and your family.
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