When it’s time to sell your College Station home, there can be some confusion when determining the value. You can have an appraisal of your house done if you REALLY want to know the value of your house. 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 College Station
Market Value by Definition:
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.”
Assuming everything goes smoothly, and you have potential buyers interested and assessing your house regularly, market value is the amount you should expect to get if you place your house up for sale.
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.”
It can be quite confusing to understand what assessed value is. For the purpose of home tax, county property assessors give values for a house, but these values are not affected by changes in market value. Equalization rate is the difference between the assessed value and market value, and it is being used by a county to determine the actual property value.
Appraised value is different from market value or assessed value. A licensed professional will thoroughly check all the parts of the house. The appraised value may be correct, but not everybody agrees to it. Whereas other methods are mathematically calculated based off of your home’s history and market conditions.
What The Internet Has To Say About It:
The large real estate sites have their own formulas for determining property values. These values are determined based on information users enter directly and are based on market conditions. It may not be accurate, but it can be very close to the actual market value of your house. Think of it as Kelly Blue Book for cars. People report seeing these numbers off by $20k, $50k, and even more!
What it Means For You As A Seller:
Do your homework! Be sure that you understand the terms such as equalization ratio and fair market value, and make sure you have all the numbers listed above. Work with professionals that can help you determine your home market value.
It is risky to set a high price for your property. You do not want to set it too high and have to repeatedly lower it to get buyers in the door. People can see your pricing history, and if you reduce your asking price repeatedly, buyers can start to think that there is something wrong with your property. Obviously, you also don’t want to set your asking price too low. You must be patient and work with real professionals in College Station if you want to get the price of your property.
If you want to learn more about the best ways to sell your College Station home, send us a message here or give our office a call now! (979) 431-1663