Assessed Value vs. Appraised Value

Cost of selling your home

The Cost of Selling Your Home – Assessed Value vs. Appraised Value

When it comes to selling your home you need to consider the assessed value of your home vs. the appraised value of your home. These are both contributing factors to the cost of selling your home. We all know that selling your home can be a stressful thing – from the larger details such as choosing another place to live to the minute details of packing your life into little boxes to be shipped to a new, hopefully forever after, destination. The difference between the assessed value and appraisal value determines whether or not your move will be a smooth transition from old to new as the cost of selling your home may generate less profit than you expected or needed.

What is the assessed value?
The assessed value is the value estimation of your home done by the city’s assessor office to establish the property tax value. The combined assessed value of all the properties in an area is used to calculate the taxable amount per year for the properties in each specified area. It is important to note that these yearly rates can change annually. This affects the cost of selling your home as potential buyers will take property taxes into consideration before purchasing a property.

What is the appraisal value?
The appraisal value is calculated by a qualified appraiser as a means of determining the value of your property. Prices of similar homes that have been sold in your area are all taken into consideration when this figure is calculated and is usually an amalgamation of the market value as well as the determinative cost to rebuild. This is done to ensure that the true market value of the home is made available to lenders who will loan you or the buyer the money to purchase the property. This commonly applies to properties that need to be financed or refinanced. The appraisal also affects the retail value of your home as potential homeowners might take future resale value into consideration. As people generally tend to think of the future market value if they invest in a property.

How does the assessed value and appraisal value impact the cost of selling your home?
You need to take into consideration that while the assessed value may be the same on a yearly bases, the appraised value, however, is the value of the property at a specific moment in time. Thus this can and will be affected by market fluctuations within the area throughout the year.

You also need to remember that there are expenses involved before the sale is finalized such as minor fix ups, landscaping, and pre inspection reports as well as other expenses involved once your home is sold such as your real estate agents commission, transfer taxes and home warranties. The cost of selling your home will also be determined by the realtor you use to help you sell your home. A good realtor will ensure that your asking price is in line with the market value of your home and not below. Don’t hesitate to give us a call if you’re interested in selling your home.


 

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Cornerstone Realty Consultants
11555 Heron Bay Blvd #210
Coral Springs, Florida 33076

(954) 695-5203
info@cornerstone-property.com