When it’s time to sell your Salt Lake City 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. Knowing the differences in these home values can set you set your ideal asking price!
What is Market Value vs Assessed Value in Salt Lake City
Market Value by Definition:
Here is what Fannie Mae has to say, The Market value is the price that a house should bring on the open market under every condition that is presented to a fair sale, the buyer and seller, each acting to the best they can, knowingly and assuming the price is not affected by any other circumstance.
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:
According to Investopedia, An assessed value is the dollar value assigned to a property to measure applicable taxes. The value that is given for the assessed valuation determines the value a residence will need to pay 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 updated enough to reflective of changes in market value. Equalization is the difference between the assessed value and the market value. This rate is used by the city to figure your actual property value.
But wait, there’s more. Did you know that your appraised value can be different then 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.
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. If you were to look at several property valuations you would see most of these numbers off by $20k, $50k and even more!
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. Working with a true real estate professional who can help you to determine the true market value of your home.
Setting a great asking price is critical. Setting it too high and lowering it to get buyers in the door may sound like a good idea but remember your pricing history is public know information, and sometimes by lowering your price several times 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 Salt Lake City.