There can be some confusion when determining the value when it’s time to sell your house. If you are eager to know what it is worth, you can pay to have an appraisal done. An agent should be providing you with detailed CMA reports and let you know what is going on in your neighborhood. Knowing the differences in these home values can set you to your ideal asking price!
What is Market Value vs Assessed Value in Los Angeles
Market Value by Definition:
Primarily, this is the amount you expected to get if you keep your house on the market for a few months provided everything will go smoothly and have your potential buyers will see your home on a regular basis.
Assessed Value by Definition:
As to Fannie Mae must say, “Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”
According to Investopedia, “An assessed value is the dollar value assigned to a property to measure applicable taxes. Assessed valuation determines the value of a residence for tax purposes and takes comparable home sales and inspections into consideration.”
Understanding assessed value can be confusing. The difference between the assessed value and the market value is known as the equalization rate. County property accessors assess values to homes for tax purposes, hence, these values are not deliberately of changes in market value and the county used the rate to figure your actual property value.
Moreso, your appraised value can differ from both of these. This is done by a licensed professional who strictly checks all aspects of the home. While they might be 100% correct, it is still the opinion of one. Whereas other methods are mathematically calculated based on your market conditions and home’s history.
What The Internet Has To Say About It:
The large real estate sites have their formulas to determine the property values and these values are broad, and based on market conditions and directly entered the information by users on the site. They don’t often accurately reflect YOUR home personally. Think of it as Kelly Blue Book for cars. It is a close guess but determining the ACTUAL market value can be much different. People report seeing these numbers off by $20k, $50k, and even more!
What it Means For You As A Seller:
Make sure you have all the numbers listed above as you do your homework, and understand terms such as the equalization ratio and fair market value. Confirm you are working with a true professional that helps you to determine accurately the market value of your home.
Setting a great asking price is critical as you do not want to set it too costly and repeatedly lower the same to get buyers immediately. Your pricing history is public information, and frequently changing your price can make buyers think there is something wrong with it. And for obvious reasons, you never intended to set your asking price too low. Getting the price you want you must have endured patience and also be sure you are working with a true professional in Los Angeles.