Do you know the difference between your assessed home value and its market value? Assessed property values are performed by local government, taking into account various factors like age, condition, and location. Market value is determined based on current real estate trends and how much someone is willing to pay for a home. Understanding the differences can help you make informed decisions when it comes to selling or appraising your property.

Understand the Differences Between Assessed vs Market Value 

Assessed value takes into account the age, condition, and location of your home, whereas market value reflects current real estate trends and what buyers are willing to pay. Assessed values typically use old data instead of current market conditions and tend to be lower than the actual market value of a home. Meanwhile, the real estate market is constantly changing and this affects how much your home can fetch on the open market. It is important to understand both assessed and market values when looking to buy, sell or refinance your home.

Check Your Assessed Home Value on Your Local Government Website

To check your assessed home value, you will need to visit the website of your local government assessment office. If you're in Lincoln, NE then this is the Lancaster county assessors website. Most websites provide a search tool that you can use to locate your property and view its assessed value. Additionally, many websites display sales history for all property in the area and any recent assessments, which can help you compare what other homes have sold for to better understand the true market value of your own home.

Get an Assessment of Your Market Value from a Real Estate Agent or Appraiser 

In order to determine the true market value of your home, you may also want to hire a qualified real estate agent or appraiser. An experienced real estate professional can analyze local economic conditions and assess other recent home sales in the area to give you an accurate estimate of your home’s worth. This can be particularly helpful if the assessed value is outdated or significantly lower than what similar homes have sold for in your area recently.

It's important to mention that Real Estate Agents don't typically charge for a market analysis, but appraisers always do. It's important to make sure you hire the right one, depending on what you're hoping to accomplish. 

Did You Know?

There's a significant difference between an appraisal done for a bank when obtaining a mortgage, and the kind done when refinancing. When hired for the bank, the appraisers are generally very conservative, as the banks expect extra protection from over lending to consumers. When doing a refinance appraisal, the appraisers are typically more generous, and tend to produce higher numbers, as in many cases, the consumer is doing a cash-out refinance.

Make Sure All Relevant Property Tax Records Are Up to Date and Accurate 

Before comparing your home’s assessed value to the actual market value, it’s important to make sure all of your property tax records are accurate and up-to-date. Objects such as extra rooms, upgraded appliances or major renovations that have been made since your last assessment could increase the market value of your home. Checking for errors and having them corrected if necessary can give you a better idea of how the market values your home so that you can compare it to the assessed value.

Reevaluate and Make Adjustments to Both Values as Needed for Proper Comparison

Once you have compared your assessed home value to the actual real estate market value, it’s important to make sure both are adjusted in the same manner. This can be done by examining the comparison of each feature that is contributing to the home’s total assessment and market value. If a certain element such as a neighborhood upgrade or appliances has contributed differently to either value, then adjustments must be made on both sides in order for an effective comparison.

Conclusion

If you're looking for real estate agents in Lincoln, NE or the surrounding areas then the team of rockstar realtors at Professional Realty Group of BHHS Ambassador Real Estate are your best choice to sell fast or find your dream home.