What is the Difference Between Market Value and Assessed Value?

“Here comes the sun ☀️ (and your tax assessment) and I say it's alright 🎼".

Did you receive a letter in the mail a few weeks ago updating your home's assessed value?

Maybe you LOVED the number you saw or maybe you were disappointed...either way, fun fact: it doesn't even matter.

OK, that's not entirely true :) 

Knowing your assessed value is important, but using it as a way to determine how much you could sell your home for is about as pointless as a Zestimate 🙊.

 

There's a difference between market and assessed value and this is pretty much how it breaks down:

Your market value is what you could likely sell your home for today. It is based off of what is currently happening in the market and it is a number we can help guide you with.

Your assessed value is the number the tax assessor comes up with to determine your property taxes. They take the likely market value of your home and multiply it by their residential assessment rate. 

Here is an example: If your market value is $1,00,000 and let's say the residential assessment rate is 90% (the exact number is available by contacting the county) you would take:

1,00,000 x 90% = Assessed Value of $900,000

Notice how your assessed value is less than your market value? This is almost always the case. A lot of sellers who choose to sell their home themselves make the mistake of listing their house at the assessed price, leaving tons of money on the table!! This is why it's so important to have an agent on your side representing YOU and your best interests every step of the way!