The difference between a home’s tax assessed value and fair market value.
This question comes up for many people this time of year when they receive their new tax bills: What’s the difference between a property’s tax assessed value and its fair market value? As you likely know, property values are increasing, so are market values rising too?
The fair market value of your home is not based on the tax assessed value. Sometimes your tax assessed value can be too high or low, and luckily that won’t affect the fair market value.
Plenty of people are refinancing to take advantage of the current low interest rates, and you sometimes need an independent appraisal for it. Thankfully, your house’s value is also not based on that appraisal. We’ve sold many homes in the past year for over the appraised value. Your home’s fair market value is also not based on your wants or needs for your next property or what your neighbors think your home is worth.
Your house’s market value is based on what similar homes in your area have sold for in the last three to six months. You can try finding that information on Trulia or Zillow, but those websites haven’t seen your house. To get accurate information, contact a real estate professional like those on the Roth Team.
A note on tax assessed values: In some instances, your assessed value may grow more than others in your community, and then your taxes will go up. We offer a free service to our past clients where we’ll give you a free evaluation of your assessed value so that you’re not paying too much in taxes.
If you would like a factual estimate of your property’s fair market value or have any questions about your tax assessed value, feel free to give us a call or send an email. We would love to help you.