Your home is a valuable asset that makes up a substantial amount of your financial worth. This is what makes knowing your home’s value so critical.
Knowing your home’s actual value isn’t always easy. There are different ways to value a house, all for various purposes. So, which method of valuing your home will give you the best indication of its worth when it comes to selling?
Read on for your ultimate guide to knowing the value of your Los Angeles home. This guide will cover market value, assessed value, and what these values mean for your Los Angeles home. If you want an instant assessment of your home’s value, you can receive a cash offer for your home from a home buying company today.
Market Value Vs. Assessed Value
What Is Market Value?
The market value of a home also referred to as OMV, or open market valuation is the value you would gain from selling it in the current marketplace. The market value of a property is usually determined by:
- Ordering a home appraisal – home appraisals cost between £200 and £600. If your home is larger, the assessment may cost more. The appraisal expert will give you a report with the assessed value and reasons behind this figure. You can hire multiple appraisal experts to get a second or third opinion.
- Checking recent sales prices – you can understand the market value of your property by checking recent sales prices in your area. Make sure to check the sale price of homes of a similar size to yours and take into account any features or damages to your home that will add or subtract from the value.
- Using online tools – online home valuation tools will give you an estimate of your home’s value compared to homes sold in your area designed to do the math for you.
- Receiving a cash offer for your home – if you wish to sell your home fast without the hassle, you can get it valued by requesting a cash offer from home investors like Mrs. Property Solutions.
What Is Assessed Value?
The assessed value of your property is the value of your property used for tax purposes. You will benefit more if the assessed value of your home is lower.
The assessed value of your home is generated by a municipal or county tax assessor, who will base this value on:
- Any home improvements you have made
- the amount it would cost to replace the home should it be destroyed
- whether you make any income from renting out the property
- the value of homes in your area
The state will generate this value either by an assessor coming to your home to conduct their search or by using software designed to determine the assessed value of a home. Once they have determined this figure, your tax assessor will subtract any tax exemptions you are viable for from the figure to work out how much of the property’s value is taxable.
You can understand the assessed value of your home by calling up your local tax authority and requesting to receive a copy of the property tax assessment of your home.
Or, since the state bases your property tax on the value of your property, you can use this figure to work out your property’s value. If you divide your yearly tax sum by the percentage of property tax in your area, this will give you a figure that correlates to your home’s value.
Valuing Your Home In Los Angeles
In California, when a property is sold or transferred to an heir that is not the original owner’s child, its assessed value is taken as 100% of its fair market value.
This means that the amount you could expect buyers to pay for your property should you sell it dictates the assessed value. This means that it would be prudent to perform an investigation into whether the assessed value may influence whether you can sell your home for a fair price down the line.
If you are unhappy with the assessed value of your home and think that the assessed value will affect how much buyers are willing to pay for your home, don’t worry. Assessed values are usually just a rough figure, based on square footage and general information, so they won’t have much of an effect on how much buyers will pay for your home.
You can disagree with the assessed value placed on your property by appealing to the Assessment Appeals Board:
Knowing your home’s assessed and market value in Los Angeles can indicate the amount of property tax you will be paying and will also let you know your worth when it comes to property assets. If you’re thinking of selling your home in Los Angeles, you should aim to get an accurate figure of your home’s market value to help you sell for a competitive price.