To many, it doesn’t make sense that your home could count as two different values, one for the market value and one for the assessed value. However, it’s extremely common for these two values to be different when a home is going through the process of being sold.
The assessed value of a home tends to be lower than the market value of a home in Utah. Discover how you can use these two different phrases to your advantage!
What Is Market Value?
The market value of a home is the price point that your home is most likely to sell at. It could sell for a higher price than the market value, based on current competition for homes in your area, or it could sell for slightly less than the market value.
Typically market value is determined by the below four factors.
1. External Characteristics:
This involves the exterior condition of the home along with its style.
2. Internal Characteristics:
The quality and style of rooms along with how energy efficient the home is.
3. Supply and Demand:
Are a lot of homes that are similar to yours on the market at the moment?
Is your part of town a popular area that many people want to live in?
What Is Assessed Value?
The value of home is assessed so that the government knows how much to charge the owner for taxes. Assessors look at what other homes in the area are selling for along with the value of recent improvements that you could have put into the home.
The assessed value is usually lower than the market value because tax jurisdictions usually have a tax rate of 80%-90% of the value that the assessor arrives at.
Having problems keeping market value and assessed value straight? Call Enlight Homebuyers at 801-939-0123 for help to ensure you get the most value from your home!