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When it’s time to sell your Central Texas home, determining its value can be confusing. If you truly want to know its worth, you can opt for a paid appraisal. Alternatively, a real estate agent can offer detailed Comparative Market Analysis (CMA) reports, providing insight into your neighborhood’s market trends. Understanding these differences in home values can help you set the ideal asking price!
What is Market Value vs Assessed Value in Central Texas
Market Value by Definition:
As per Fannie Mae, “Market value represents the most likely price a property would fetch in a competitive and transparent market, considering all conditions necessary for a fair sale, with both buyer and seller acting wisely and with full knowledge, without undue influence on the price.”
Essentially, this is the sum you can anticipate to get if your house remains on the market for a few months, assuming a smooth process with regular visits from potential buyers.
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.”
Comprehending assessed value can be somewhat perplexing. County property assessors assign values to homes for tax assessment purposes; however, these values may not accurately reflect changes in market value. The variance between the assessed value and the market value is termed the equalization rate. This rate is utilized by the county to determine your property’s actual value.
Appraised Value:
However, there’s another factor to consider: your appraised value can vary from both of these figures. An appraisal is conducted by a licensed professional who meticulously examines all aspects of the home. While their assessment may be accurate, it remains the opinion of one individual. In contrast, other methods rely on mathematical calculations based on your home’s history and prevailing market conditions.
What The Internet Has To Say About It:
The major real estate websites utilize their proprietary algorithms to calculate property values. These values are general and rely on market conditions and data provided directly by users on the platform. However, they may not always precisely reflect the value of YOUR home. You can liken it to the Kelly Blue Book for cars; it provides a close estimate, but determining the actual market value can be significantly different. Reports indicate discrepancies of $20k, $50k, and even more!
What it Means For You As A Seller:
Be diligent in your research! Ensure you gather all the aforementioned figures and grasp concepts like the equalization ratio and fair market value. Collaborate with a genuine professional who can assist you in precisely determining the market value of your home.
Establishing an optimal asking price is crucial. Setting it too high and subsequently reducing it multiple times to attract buyers can be detrimental, as your pricing history is public information. This may lead potential buyers to perceive issues with the property. Conversely, setting the asking price too low is also undesirable. Achieving the desired price requires patience and collaboration with a reliable professional in Central Texas.
If you want to learn more about the best ways to sell your Central Texas home, send us a message here or give our office a call now! 512-230-3469
Frequently Asked Question
Maybe you have a few questions. That’s okay; most people do. So, are some questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you.
Q: Do you pay fair prices for properties?
A: Yes, we pay fair market value for the condition of the property. Don’t forget, you wont be paying any real estate fees or have to do any repairs. The large expense for both of those items falls on us. No time or effort or expense is required on your part of fix up the property or pay agent fees. We have to make sound investments to be able to put out a large amount and still be able to make a profit in the end. If that’s what you’re looking for and you see the value in getting your house sold fast… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)
Q: How do you determine the price to offer on my house?
A: Great question, and we’re an open book: Our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and values of comparable houses sold in the area recently. We take many pieces of information into consideration… and come up with a fair price that works for us and works for you too.