Here’s everything you need to know about assessed values and list prices.
Often, sellers ask me why the list price is different from the assessed value. Today, I’ll break down the differences so you can better understand your home’s value.
First off, what is an assessed value? Essentially, it’s the value of your home as determined by the governing body of your state. A different way to think about assessed value is that it’s the taxed value of your home. When it comes time to pay property taxes, your state uses the assessed value to determine how much you pay.
Usually, the confusion comes when a seller calls me after finding out their property taxes. They think the state has undervalued their home. After all, doesn’t the government know about the new bathroom they just renovated? How could their home be worth so little?
If you’ve found yourself in this situation, don’t worry. The bottom line is that the assessed value will not change the list price of your home. You want the assessed value of your home to be low so you don’t have to pay as many taxes.
So what’s the list price? It’s just the value for which your home will sell. When you work with me to sell your home, we’ll do a competitive market analysis and compare your home to similar homes that have sold recently in your area. By comparing apples to apples, we can get a great estimate of what your home will sell for and get you top dollar in a short amount of time.
In general, the assessed value will be less than your list price, and that’s not a bad thing. If you have any questions about today’s topic, please reach out to me via phone or email. My team and I are always willing to help.