When selling your house, it’s important to know the difference between market value and assessed value. Often, homeowners confuse or don’t know the difference, leading to them not getting the best home price.
This post will explain the difference between market value and assessed value. We’ll also touch on the appraised value and how it differs from the market and assessed values. Continue reading!
What Is Market Value?
Market value is the estimated amount of money that a property would sell for on the open market. This number is determined by looking at recent sales of similar properties in the area and any current trends in the real estate market.
It’s important to note that market value can fluctuate, and it’s not always the same as a property’s assessed value or appraised value.
What Is Assessed Value?
The assessed value is the worth of a property as determined by the municipality in which it’s located. This number is used to calculate your property taxes, and it’s usually lower than the market value of your home.
The assessed value is determined by considering the property’s size, any improvements that have been made, and the location.
What Is Assessed Value?
In addition, your appraised value can differ from the market and assessed value. An appraisal is done by a licensed professional who meticulously checks all aspects of the home. While they might be 100% correct, this is still one person’s opinion. At the same time, other methods are calculated based on your home’s history and market conditions.
What Does It Mean For You As A Seller?
As a seller, you want to focus on the market value of your home. This is the potential number on which buyers will be basing their offers, and it’s the number you should use when negotiating with buyers.
The assessed and appraised value can be lower than the market value, so if you’re basing your asking price on either of those numbers, you could leave money on the table.
It is crucial to set a good asking price from the beginning. Doing otherwise would result in having to lower the price multiple times, creating a public history of your property that could deter buyers.
4 Differences Between Market Value and Assessed Value
Now that we’ve gone over what market value and assessed value are, let’s take a look at the main differences between them:
- Market value can fluctuate, but assessed value usually stays the same.
- Appraised value can be lower, the same, or higher than the market and assessed values.
- The appraised value is the opinion of one person, whereas market and assessed values are mathematically calculated.
- Market value is determined by recent sales of similar properties and current trends, while the municipality determines assessed value.
Sell Your House To OC Home Buyers And Get The Best Price For Your Property!
With OC Home Buyers, you can be confident you’re getting the best price for your home. We’re a reputable company, and we buy houses in Orange County, CA. We’ve helped countless homeowners sell their homes quickly and for a fair price.
When you work with us, there are no hidden fees, and you don’t have to worry about making any repairs. We’ll take care of everything for you so you can focus on your next chapter. Get in touch with us today.