Hello & Happy Spring!
Often, we are asked if there is a difference between the assessed value of a property and its market value along with if we feel the two are related.
Assessed Value: What It Is and Isn’t
The assessed value of a property is determined by the city for the purpose of levying property taxes. This value is calculated based on a variety of factors including, but not limited to, the property's size, age, and location. There are some factors that are not often taken into consideration such as a pool, renovations or on the other side abnormal wear and tear. It’s important to note that the assessed value is determined as of June of the previous year and will go up or potentially down depending on the overall market during this time.
While the assessed value plays a vital role in the taxation process, it does not necessarily reflect the the exact price but often more of an indication of the overall value. This year, for example, many property owners have noticed a decrease in their assessed values, mirroring the overall downturn in the market which would be accurate but the actual values are often fairly different from each other.
Market Value: The Realtor’s Perspective
As realtors, our focus is on the market value of your property. Unlike the assessed value, market value is determined by what a buyer is willing to pay for your property in the current real estate market. This value is influenced by a myriad of factors, including recent sales of similar properties, current demand, condition of the property and overall market conditions.
It's important to note that market value is dynamic, reflecting real-time economic conditions, buyer demand, and other market trends. This is where our expertise comes into play. Utilizing our deep understanding of the local real estate market and current trends, we provide you with a comprehensive analysis that captures the true value of your property.
Why the Distinction Matters
Understanding the difference between assessed value and market value is crucial for several reasons. When planning to sell your property, relying on the assessed value could lead to pricing it too high or too low, which can affect your sale timeline and final sale price. Similarly, for those looking to purchase, it's important to not equate a property's assessed value with its worth on the market.
If you're considering selling or purchasing a property, or simply have questions about your property's value, we're here to help and happy to provide a complimentary market evaluation.
Please let us know if you have any questions – we are always just a phone call away.
Warm regards,
Shannon & Tamara
