Posted by Competitive Edge Real Estate Services on 12/1/2020

When youíre buying or selling a home, you may hear the terms, ďassessed valueĒ and ďmarket value.Ē There are few things that you should know about these terms. First, they cannot be used interchangeably. The assessed value is generally much less than the market value. If youíre buying a home, you probably would rather see the assessed value of the home as a price! If youíre selling, the same holds true for the market value of the home for you.


Market Value Is Used Differently Than Assessed Value


The market value is how much your home is worth on the market currently. The definition is exactly as the term sounds the home is looked at by an assessor and given a value. The assessed value is used to determine property taxes, among other things. As you can imagine, the assessed value can become a point of contention for many homeowners especially when it comes to paying their tax bills. Many homes end up being assessed at a higher price than their current value, bringing tax bills to higher levels. The market value is what the home will sell for when it is listed for sale.


Be careful when searching for a home to buy. Many sites list the assessed value along with the price of the home or estimated market value of the home. You donít want to get these numbers confused when budgeting and searching for the perfect house. 


If youíre getting ready to sell your home, pay little attention to the assessed value of the home. That is not what your home will sell for. 


The market value is a good reason to hire a realtor to help you sell your home. Realtors are experts in finding the market values of homes. They will even do something called a CMA (comparative market analysis) for you to help you determine the right price for your home to sell at. This is where comparable properties in the area are examined for their selling prices and all the perks of your home and neighborhood are considered. The market value is determined by the price of the homes that have recently been sold in the area based on the location of the home and how close it is to certain amenities like schools, parks, and the probability of future construction. 


Finally, know that the market value and the appraised value of a home have a lot to do with how much a lender will give you to buy the property. Every home that is being bought must go through an appraisal, to protect the lender from overpaying for a home.    


Whether youíre buying or selling a home, knowing your value terms can really be a help in understanding the sweet spot for pricing a property  





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Posted by Competitive Edge Real Estate Services on 11/7/2017

Ever wondered what the market value of your home is? Or what the market value would look like for your dream home? If youíve done a quick Google search youíve probably come across at least a handful of websites offering tools to help you determine the value you on your own. But the numbers these tools put out should always be taken with a grain of salt. Calculating a homeís value is a complex calculation taking more than just hard data into account. And thatís where your real estate agent comes in with the information you need to know that an online tool couldnít possibly obtain.

The first thing you should know is that the market value is not a number set in stone. Itís also not a number that is reached from purely quantitative data. This is because market value is what buyers are willing to pay for a home and there are so many qualitative factors that go into this decision. Factors a computer canít find or determine on its own and that usually require someone local who has extensive knowledge of the area.

Someone like a real estate agent! An agent is well versed in selling homes in the area and connections to the community. Agents also have access to a database that stores information from all the local home sales to use as a jumping off point when calculating the home value.

So this isnít a hard and fast rule that necessarily goes by the book. While homes that have sold with similar features as yours are part of the equation they arenít the whole picture.  So yes, the number of bed and baths in your home, amenities, recent updates, the overall condition of the home, location, and age of the house will all be carefully considered this is just a piece of the bigger picture.

Factors such as current market conditions,  how many other houses are on the market, and the various reasons why nearby homes have sold are a few factors that can make an impact on your home value. Afterall, you donít want to underprice your home based off of other homes that have sold at a lower price point to attract buyers fast or overprice for your neighborhood based on what you feel your home is worth.

Lenders want to ensure the home is selling at or above the market value so getting the price right will ensure a smoother buying process for potential buyers. However, if a property is on the market for longer than 30 days, which happens often to those that are overpriced, buyers start to wonder why. They may avoid your home as a possibility. In this scenario, sellers often have to significantly drop pricing, often below market price, to attract potential buyers.

Real estate agents are truly the best source for all of this information. They can perform what is called a competitive market analysis (or CMA). We have access to resources third-party websites and DIY-appraising just canít access.




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