Assessed value is the amount designated by local or state governments for taxation purposes. It often differs from market or appraisal value and serves as the basis for property taxes. In many cases, assessed values do not accurately reflect a home’s market value. Approximately 60% of U.S. properties are assessed higher than their current market value, yet this has little bearing on what a home will actually sell for.
WHAT IS YOUR HOME WORTH?
The first step in selling a home is understanding the difference between value, worth, and price. Several factors influence a home’s value, and understanding these factors can help sellers leverage them effectively. online home valuation One way to start estimating a home’s value is through online tools. Several free platforms provide rough estimates based on recent comparable sales in the area. However, these systems rely on publicly available data and automated algorithms that may not be accurate. They do not account for location-specific trends or unique property features. For example, a home in Marin was evaluated using an online tool. The home last sold for $1,180,000 in 1998 and was appraised for refinancing at $1,775,000 in 2020. However, in 2017, an online calculator estimated its value at $1,158,000. The discrepancy arose because the system compared six recent sales—only two from the same high-value neighborhood, while the other four were from lower-priced areas nearby. Local real estate professionals would have been aware of the neighborhood’s true value, but the algorithm failed to capture it.
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