When it’s time to sell your Fort Wayne 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 Fort Wayne
Market Value by Definition:
So what are the differences? According to Fannie Mae, “Market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”
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. Assessed valuation determines the value of a residence for tax purposes and takes comparable home sales and inspections into consideration.”
Understanding assessed value can be a bit confusing. The values the county property assessors give to homes for tax purposes are not reflective of changes in market value. The difference between the assessed value and the market value is known as the equalization rate. Your actual property value uses this rate.
Appraised Value:
Confused yet? There’s more. Your appraised value can differ from both of these. An appraisal is done by a licensed professional in Fort Wayne who rigorously checks all aspects of the home. While they might be 100% correct, this is still the opinion of one. The other methods are mathematically calculated based off of your home’s history and market conditions.
What The Internet Has To Say About It:
Big 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. It’s hard for them to be 100% accurate in reflecting your home personally, and they usually aren’t. 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. People report seeing these numbers off by $20k, $50k and even more!
What it Means For You As A Seller in Fort Wayne:
Do your homework! Make sure you have all the numbers listed above and understand terms such as the equalization ratio and fair market value. Make sure you are working with a true professional who can help you to accurately determine the market value of your home.
It’s critical to set a great asking price in Fort Wayne. Repeatedly lowering the price because you priced too high will be public information, and can make buyers think something is wrong with your home. 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 Fort Wayne.