Have you ever wondered what your home is worth? The answer to that question depends on what you mean by value. Here are the three “value” distinctions, according to the Zillow Group.
Tax assessed value
This figure varies throughout the U.S. since it is determined by the taxing authority of the city, county, or state where you live. Sometimes it is the same as the market assessed value and other times counties will multiply the market value by an assessment ratio to get the tax assessed value, which is often lower than the market assessed value.
For example, suppose where you live, homes are assessed at 100 percent of market value. If you have a home that has a market value of $150,000, your home will be assessed at $150,000. However, if your taxing authority assesses homes at 70 percent of value, your $150,000 market value home will have a tax assessed value of $105,000.
Tax appraised value
This is the value of real or personal property based on the valuation established by a government tax assessor.
Market assessed value
This is the price the government tax assessor estimates the property would sell for on the open market as of the effective date for the assessed value for the year in question. The assessor’s market assessed value is based on actual historical sales of similar properties for a specified study period.
For example, a market assessed value with an effective date of January 1 may have been determined considering comparable sales during the previous 12 months ending September 30 of the previous year. Sales study periods vary by assessment jurisdiction. Because historical sales are used, assessed values are typically less than current market values.
Knowing what your home is worth is important, especially when determining its selling price. Pinpointing the right asking price can make all the difference between a house that sells quickly and one that languishes on the market. Although you can venture online to try to determine your home’s value, there is no substitute for the expertise of an experienced realtor who has access to a vast database of information.