Know the Difference Between Your Home’s Assessed Value vs. Market Value
While real estate may be at the peak of purchases, this question always troubles new buyers. The ones in the market usually know it inside out. But, if you don’t know about it, it is okay. The world is not ending. Neither do we plan to leave you with that confusion. In fact, we will help you understand it right now as we go ahead through this blog.
Putting it real simple, we need to understand the importance of both and the difference between both. It is because one dictates the property tax you are supposed to pay, while the other sets the value for your property for sale. They might appear to be closely linked. But, the two are very diverse aspects, if looked closely. Firstly, we will look at both separately and then compare both for better understanding.
The Market Value
We wanted to go with the market value first. It is because it is the more exciting price that comes to us during the purchases. When we are to sell or buy a house or property, the rate we claim or ask is called the Market Value. This value is quite turbulent and fluctuates based on market trends and demands. The market value is usually a positive graph unless the property has some concerns degrading its value. That is the only case the value of the asset will be depreciated.
Also, the exact Market Value can only be determined when a house is actually sold. Any rates before that can be given with an estimation from the market values of properties around. But, this will only be an estimation and not a perfect figure. This can also be done by real estate agents. Please make sure you reach out to reliable brokers or real estate agents for the same. You can yourself inquire within the area to get a rough idea about the rates around your owned/dream property. Yet, it is always advised to get a reliable person/group to get it done for you. In case you are searching for someone like this, we at Ark Group can help you with the same.
Nevertheless, if you want to do it yourself, here are the key factors that help derive the market value for a given property. The proximity of the property to amenities like schools, hospitals, etc., play a crucial role in deciding the Market Value. It is also based on the demand and supply of real estate in that particular locality. Moreover, the exteriors and interiors can also be game-changers. Lastly, the location and the rates of properties nearby would help you add a price tag to the property you are aiming for. All these parameters will help you find something close to the actual market value. Please note that some numbers may differ.
The Assessed Value
The assessed value is basically used for taxation purposes. This figure is a percentage of the market value. The percentage values depend from region to region. A percentage of this assessed value is then annually taxed by the government as property tax. This value is fixed during the defined tenure even if the market value changes during this time. This can be quite beneficial if the market value is lower when the assessed rate is fixed. Hence, even if the market value increases later, the taxes and assessed values remain the same. Yes, this can also be vice-versa. But, it is hardly seen that way, as the real estate industry is witnessing an exponential surge.
With all that being said, we hope the difference between Market Value and Assessed Value is pretty clear for you. Also, we hope we have also cited the importance each one holds. If by chance, you ever look for better rates over properties or need someone to assess your property and find the numbers for it, We The Ark Group would be Happy to Help. We hope you have a memorable real estate journey.