Before selling your home, you must settle on a listing price. There are several factors you can use to determine the price, including the assessed value and market value of your home. If you are not familiar with those, here is what you need to know.
What Is the Assessed Value?
The assessed value is based on an assessment that is conducted of your home. The value is often used by the county government to determine taxes and by the mortgage lender to determine the appraised value. Several factors are considered to calculate the value.
An assessor or appraiser calculates the value of the home using factors like the amenities, comparable homes that have sold in the area, and income you have made from the home. For instance, if you rented out your basement, this would be considered in the appraisal.
Once the assessor has determined the value of your home, he or she will multiply it by as assessment rate. The rate is set by the county tax assessor. The figure will be used for taxation purposes.
The assessed value is not necessarily the price you should list your home for. It can work in your favor if you plan to list your home for a price lower than that. If a buyer balks at paying the listing price, you could note that it is on sale for less than the assessed value.
What About the Market Value?
The market value is likelier more important to you. It is the amount that your home should be listed at according to the current housing market. It is highly dependent on what comparable homes in your area are selling for.
A real estate agent can help you determine what the market value should be. To calculate the listing price, your agent will look at several factors, including the number of rooms in your home, curb appeal, and the demand for homes in your area. Where your home is located also plays a role.
There could be a considerable distance between the market value and assessed value. For instance, the assessed value could be $200,000, but the market value could be $225,000. If you are concerned in the difference between the two, talk to your agent. He or she can explain the factors that were used to calculate the value.
It is important to remember that your agent is experienced in assessing the market value of a home and his or her advice is likely spot-on when it comes to selling your home.
You can also research various home selling resources to help you further understand how the listing price should be obtained.Share