Ask a REALTOR®: 30 Common Real Estate Questions Answered in 30 Days: Question 4: Why is my home’s assessed value different from the market value?

Understanding Home Values: Assessed vs. Market Value—Real Estate Q&A

Meta Description: Gain insights into the differences between assessed and market values of homes in the real estate market. Understand how market dynamics and appraisal factors influence these values, and learn about their impact on home buying and selling processes. Contact Dave Parker, REALTOR®, for personalized guidance on navigating real estate values and transactions.

Welcome back to Day 4 of our real estate question series! Today’s topic delves into a common query among homeowners:

Question 4: Why is my home’s assessed value different from the market value?

The assessed value and market value of a home are determined by distinct factors:

1. Market Value: This value is influenced by buyers and sellers in the real estate market. For instance, in a seller’s market with high demand and low inventory, your home’s market value may exceed its assessed value. Buyers may offer more than the assessed value due to competitive bidding, ultimately determining the market value.
2. Assessed Value: Professional licensed appraisers calculate the assessed value based on various factors such as property condition, size, location, and comparable sales. However, the assessed value may not always align with the market value, especially during market fluctuations or unique market conditions like a seller’s market.

In a seller’s market, where demand outstrips supply, homes may sell above their assessed values due to competitive offers. Conversely, in a buyer’s market with increased inventory, sellers may encounter lower offers relative to the assessed value.

It’s crucial to note that extreme market conditions, such as significantly higher market values compared to appraised values, can sometimes pose challenges during the home buying process, particularly with lenders and loan approvals.

Tomorrow, we’ll explore the topic of negotiability in real estate commissions. For any future questions or assistance with buying or selling your home, feel free to contact me at 405.401.0099 or visit https://daveparker.sites.c21.homes.

Have a great day until our next discussion!

For full text, visit video on our YouTube Playlist: https://www.youtube.com/playlist?list=PLOrIAsa07BvxMX7230jW_xOrrLzrBxPt0

Dave Parker, REALTOR®, License #204189, Phone (405) 401-0099.

Century 21 Judge Fite, 1220 S. Santa Fe, Edmond, OK 73003, Broker #154475. Contact (405) 359-7400. Email: Dave@mrdaverealty.com.

Website: https://daveparker.sites.c21.homes

Questions courtesy of Clever.com

KEYWORDS:

• Assessed vs. market value
• Home valuation differences
• Real estate market impact
• Seller’s market dynamics
• Appraised value explanation
• Home pricing factors
• Buyer’s market effects
• Property appraisal insights
• Market-driven home values
• Lender appraisal challenges

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