The Right Way to Find Your Home’s Worth
You are not the first seller to ask this question. Every year many first time sellers are puzzled by the different values and the reasoning behind each value. As the seller, it’s important to remember that you will need to know your appraised value, assessed value, and fair market value. Working with a licensed appraiser is a great first step as your appraised value is the most important to help you identify the current market value of your property and set the listing price.
Let’s dig into the nitty-gritty of what you need to know…
The assessed value of a home is used primarily for the purpose of taxes in your local municipality. This value of a home is multiplied by the local tax rate to determine what your yearly taxes are (or what the new buyer’s taxes would be). Unlike the assessed value, the appraised value is determined by a licensed appraiser after evaluating the property structure, the current real estate market conditions and the appreciative value from remodeling and updates. This value ensures the price that is agreed upon by the buyer and seller is a fair market value or greater. The appraised value has nothing to do with the taxes of the residential community. The fair market value, although closely related to the appraised value is the only value that can be determined by a licensed or unlicensed professional and determines the the market price of your home in regards to the current state of the market in your area and what price-point would allow your home to be sold in your local market based on average home sale price and market conditions.
In short, the assessed value of your home has no impact on how much your home is worth, and can be significantly higher or lower than your home’s market value or sale price based on structure and location alone. The appraised and fair market values revolve primarily on the price at which your home will sell in an open market with relevance to the property’s overall value based on land, structure, foundation, and improvements from the time of purchase.
If you have any additional questions about the values of your home or are searching for the right real estate agent to help you get the most out of the sale of your home, our team is happy to help in any way we can. Give us a call at (330) 469-2347.