Homeowners are often surprised when they receive their annual statement from the local tax appraiser’s office. Often the assessed value of their home is very different than what they believe the property is worth.
Now’s a great time to take a look at the difference between two common real estate terms: “Assessed Value” and “Market Value.”
The Assessed Value is the dollar value assigned to a property by a public tax assessor for the purposes of measuring applicable taxes. The number is very often a point of contention with homeowners, who may believe it to be too high or too low. The Assessed Value does not offer a shortcut to a home’s Market Value.
The Market Value is the highest estimated price a property will bring in a reasonable amount of time if exposed for sale on the open market. Market Value is influenced by such factors as homes that recently sold in the area, the location of the property, the home’s amenities, and the condition of the property. Of course, Market Value is also influenced by the current economy.
Knowing the difference between Assessed Value and Market Value is great. But even better is knowing what your property is worth in today’s fast-paced North Texas housing market.
To get started, contact an Ebby Associate today. To find the right agent for your real estate needs, visit the award-winning ebby.com.
Heads up, the property tax protest deadline is earlier this year than in previous years. Those wishing to protest, must do so by May 15, 2018, or 30 days after a tax notice is delivered, whichever is later.
If you’re fortunate enough to live in North Texas you’ve no doubt seen plenty of media stories about our region’s rising home values. So, it’s only natural if you’ve been wondering, “What’s my home worth now?”
The reality is there’s more than one answer. Your home actually has three potentially very different values:
If your home is destroyed, by say, a fire or tornado, replacement cost is what it would take to remove debris and rebuild. Most experts agree that homes should be insured for 100 percent of the minimum estimated replacement cost. If your home is not, you run the risk of coming up short if the cost to rebuild is more than your coverage will pay.
Property Tax Value
This is the number taxing authorities use to calculate your property tax bill. Typically, property tax values are meant to approximate a home’s market value, though sometimes there are large discrepancies between the two because of outdated assessments or mistakes by assessors.
If the property tax value of your home exceeds the market value, consider contesting the value with your taxing authority.
This is the measure most of us think of when trying to estimate our home’s value. Determined in part by the price people have paid or are willing to pay for similar houses in your neighborhood, market value is not based on what you paid for the home or how much it cost to remodel that beautiful new kitchen or master bath.
Determining market value is a job for a properly educated real estate professional. If you’re considering offering your home for sale, we recommend contacting an Ebby agent to determine the current market value of your property. To get started, visit the website voted one of the industry’s best by the Web Marketing Association, ebby.com.