If you’re a homeowner, at some point, you’ve probably wondered what your home is worth. And if you’ve ever sold a home, you’ve likely heard of the terms “market value” and “assessed value.” But what’s the difference? And which one matters more? Here’s a breakdown of each term and why it matters when selling your home.
What is market value?
Market value is what a willing and informed buyer would pay for your home on the open market. In other words, it’s what similar homes in your area have recently sold for.
Several factors can affect your home’s market value, including its location, size, condition, and any unique features or upgrades. The current state of the housing market also plays a role. For example, if there’s high demand for homes in your area but limited inventory, your home could sell for more than it would in a buyers’ market with more homes to choose from.
To get an accurate estimate of your home’s market value, you can talk to a real estate agent specializing in your area. They’ll be familiar with recent sales of similar homes and can give you a good idea of what your home is worth.
What is assessed value?
Your local municipality sets your home’s assessed value for taxation purposes. It’s based on several factors, including the size, location, and age of your home. In some cases, the assessed value may also consider any upgrades or renovations you’ve made.
Keep in mind that the assessed value is different from the market value. The assessed value is typically lower than the market value because it’s used to calculate your property taxes. As such, it’s not necessarily a good indicator of how much your home would sell for on the open market.
In most cases, your home’s assessed value won’t directly impact your ability to sell it. However, the assessed value will be vital if you plan to appeal your property taxes.
If you’re considering selling your home, the market value is the number you should focus on. Potential buyers are willing to pay this for your home, and it’s the best indicator of how much money you’ll ultimately make from the sale.
Call me today to learn more about how to value a home! My personalized and comprehensive service, complete support to her clients, and superior service are key to my 20 years of thriving in Prescott Real Estate.
Our team of agents, lenders, and marketing professionals ensures that your goal of purchasing or selling a home is reached. Sellers benefit from my years of experience in Prescott and my dedication to ensuring they reach their goals. Whether working with buyers in new home sales, retirees downsizing, or first-time home buyers navigating the home buying process, I will work tirelessly to ensure a smooth transaction.