I have often been asked why there can be such a large discrepancy between the assessed value of a property and the appraised value. To clearly understand this question it is first important to understand what exactly the two terms mean. An assessed value is the valuation placed on a property by a public tax assessor, exclusively for tax purposes.
On the other hand, the appraised value is determined by licensed appraiser who uses a number of criteria including recent comparable sales, replacement cost and their professional knowledge of market conditions. Furthermore, the appraised value is what lenders will typically use to determine the value of a home.
All too often home owners and home buyers put too much weight on the assessed value of a home especially when it is favorable to them(high for owners, low for buyers). However, the assessed value will have little if any influence on a lenders willingness to lend on the property. Nevertheless, to get an appraisal done on a home can cost several hundred dollars.
So how can you figure out what your home is worth? Contact your Realtor and have them put together a Comparable Market Analysis (CMA) for you. A CMA will look at similar properties that have sold recently to give an estimate of value. Furthermore, unlike an expensive appraisal that can only be done by a licensed appraiser, many Realtors will put together a CMA for you for free.
If you have any questions about assessed vs appraised values, or would like a free CMA to estimate the actual value of your home, please feel free to contact me anytime at the information below.
All the best,
Tyler MacGuire e-PRO®, SFR
Broker Associate
Omni Real Estate Company
Office: 970-468-2740
Web: www.tylermacguire.com
“Your Guide to Summit County
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