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The assessed value is the value your town puts on your home so you’ll pay your fair share of property taxes, but it doesn’t often correspond to its true value.
For a more accurate number, real estate agents use the next approach, which is comparative market value. This model looks at similar homes sold in the past 6 to 12 months to tell you what you can expect to get out of your home.
The appraised value, which is done by a licensed appraiser, is ordered by a bank or buyer to make sure the home is absolutely worth what the buyer says it is worth or is willing to pay. This is done when a home is being financed or refinanced. The appraiser uses data on what other similar properties are selling for and also makes adjustments, so the comparative market value and appraised value should be similar and accurate. In better markets, banks were looking to loan money, so we saw some appraised values coming in way above what you would consider selling the home for because banks wanted to loan the money.
Last, new automated valuation models allow you to plug in your address, and it spits out a number. These are the least accurate because they don’t take into consideration special features of the home.
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If you’d like me to build a strategy so that anyone who is looking for a house in your neighborhood—and price range—will know about your home, or if you’re looking for your dream home, please contact me at (585) 721-301 or (585) 279-8250. You can also check out my website at www.jeffscofield.com.
