What’s the difference between a home’s market value and its assessed value? We’re going to examine that today.
Understanding your home’s value is an important part of knowing your net worth and determining how much property tax you’ll be required to pay. But depending on where you look, home values and assessed values may appear different. The reason is that they can mean different things and are often used for different reasons.
Your home’s market value is the estimated amount that a buyer would be willing to pay for your home. Your market value is determined by an appraiser, who is typically hired by a lender who is deciding how much money to provide in a loan.
Your home’s assessed value is basically its market value with property taxes. In many counties throughout the U.S., the assessed value is a portion of the market value calculated as a percentage of the market value. As a result, the assessed value is typically lower than the appraised market value.
What if you disagree with your home’s assessed or market value? There are options to contesting your valuations. For market value, you can request a second appraisal with new information that the previous appraiser might not be aware of. For the assessed value, many assessors’ offices have contact information listed and occasionally host public forums to discuss individual issues.
I hope this helps you better understand the difference between these two values. If you have any questions or need any help buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.