When it’s time to sell your Kendall home, there can be some confusion when determining the value. If you REALLY want to know what it is worth, you can pay to have an appraisal done. An agent should be able to provide you with detailed CMA reports, letting you know what is going on in your neighborhood. Are you considering selling your house in Kendall, Florida? Understanding the differences between market value and assessed value is crucial to ensure a smooth and successful transaction. Knowing the differences in these home values can set you set your ideal asking price!
What is Market Value vs Assessed Value in Kendall
Market Value by Definition:
Market value represents the price at which a property would sell in the current market conditions. It’s influenced by factors such as location, demand, property condition, and recent sales of comparable homes in the area.
According to Fannie Mae, “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.”
Basically, this is the amount you can expect to get if you keep your house on the market for a few months provided everything goes smoothly and you have potential buyers coming to see your home on a regular basis.
Assessed Value by Definition:
Assessed value is the value assigned to a property by local government authorities for tax assessment purposes. This value is used to calculate property taxes and is often based on factors like the property’s size, age, and improvements, rather than its current market value.
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 a bit confusing. County property accessors give values to homes for tax purposes, however, these values are not reflective of changes in market value. The difference between the assessed value and the market value is known as the equalization rate. This rate is used by the county to figure your actual property value.
Appraised Value:
But wait, there’s more. Your appraised value can differ from both of these. An appraisal is done by a licensed professional who rigorously checks all aspects of the home. While they might be 100% correct, this is still the opinion of one. Whereas other methods are mathematically calculated based off of your home’s history and market conditions.
Appraised value is determined by a licensed appraiser and represents an independent evaluation of a property’s worth. This valuation is typically conducted during the mortgage process to ensure that the property’s value aligns with the loan amount.
What The Internet Has To Say About It:
The large real estate sites have their own formulas for determining property values. These values are broad, and based on market conditions and information entered by users on the site directly. They do not always accurately reflect YOUR home personally. Think of it as Kelly Blue Book for cars. It is a close guess but determining what the ACTUAL market value can be much different. People report seeing these numbers off by $20k, $50k and even more!
A wealth of information on market value, assessed value, and appraised value can be found online. Websites like cashhomebuyerflorida.com offer valuable resources to help sellers understand these concepts and make informed decisions about their property transactions.
What it Means For You As A Seller:
Do your homework! Make sure you have all the numbers listed above and understand terms such as the equalization ratio and fair market value. Make sure you are working with a true professional who can help you to accurately determine the market value of your home.
Setting a great asking price is critical. You do not want to set it too high and have to repeatedly lower it to get buyers in the door. Your pricing history is public information, and repeatedly lowering your price can make buyers think there is something wrong with it. And for obvious reasons, you don’t want to set your asking price too low. To get the price you want you must exercise patience and make sure you are working with a true professional in Kendall.