Market Versus Assessment Value

What is the difference in market versus assessment value. What are the calculations based on? In a hot market, like we are in now, these values can look vastly different. Let’s take a look the bases of market value versus assessment value.

             Original Bathroom

Assessment Value

The assessment is taken in July of the previous year. This assessment will be used by the City to determine your taxes and is a generalization. 

  • Property size
  • View
  • Additions
  • Location
  • Age of property
  • Sales prices from homes in your area
Updated

Updated and maintained.

Market Value

  • Lot size, is the lot flat, on a flood plain, on a rocky mountain?
  • Property size, number of bedrooms, bathrooms, floor plan
  • View, is the home looking at industrial park or a beautiful view of the city
  • Additions, patios, upgraded bathrooms, updated kitchen, renovations
  • Locations, it is a desirable location, easy access to transit, freeways, highways
  • Age of property, new, old, update, regular maintenance
  • Sales of homes comparable in your area from the past 3 months
  • New, roof, air conditioning, hot water tank, appliances

Market value assessment is much more specific and current. The trends and sales of comparable houses in the area during the past 3 months are used. Based on this the value can be quite different than the assessment value.

Example

Looking at two houses both the same age, neighborhood, square footage, floor plan, and lot size. Now, the first has not even maintained the lot, or the home itself. And the second house, immaculate lot, home is well maintained, updates in kitchen and bathrooms, new flooring throughout, new upgraded appliances.


The assessed value these two properties would be similar. And market value on the other hand, would see them very differently.
Market Value is ever changing. And for that reason, when buying or selling your home talk to your Realtor. They can do a Market Assessment for you. Having access to the most up to date information is crucial when buying or selling a home. Never go it alone!

 

REW