What are the possible reasons my home’s assessed value may differ compared to the market value?
That’s because your home is valued in different ways, for different reasons, the following is often used to calculate market value of a home:
Interior layout & design preferences at the time
Location & proximity to various types of transit
The interior size of a home
Garage, carports, decks, number of parking stall, RV parking, etc.
Upgrades and maintenance such as: renovations, hot water
tank/furnace/roof/windows updated, flooring, appliances, and more
Lot size if detached, and whether the lot is flat, sloped, difficult to build on, in a flood plain, or has large trees with roots located on the lot area
The CURRENT real estate market trends
Recent sales that are comparable
Buyer emotion and how badly they need to move or want THAT property
As you know assessed value is basically used by local and county authorities for taxation purposes, while market value indicates the price of a property that a buyer is likely to pay and the seller is likely to accept.the assessed value is calculated as a percentage of market value that is called the assessment rate. The rate can vary anywhere from 10% to 100% depending on the state. typically, an assessor will look at several factors such as:Comparable homes. Other home values in the area will affect the assessed value of a home.Recent improvements. A kitchen renovation, bathroom remodel or major addition will likely increase the value of a home.Rebuilding costs. The estimated cost of rebuilding a house will affect the assessed property value.