What is Market Value vs Assessed Value in Salt Lake City, Utah

Market Value vs Assessed Value Varies

When it’s time to sell your Salt Lake City home, there can be some confusion when determining the value. If you REALLY want to know what it is worth, you can pay to have an appraisal done. Or, an agent should be able to provide you with detailed Comparative Market Analysis (CMA) reports, letting you know what is going on in your neighborhood. Knowing the differences in these home values can help you set your ideal asking price! 

What is Market Value vs Assessed Value in
Salt Lake City and Northern Utah.

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 required for a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”

Basically, this is the amount you can expect to get if you keep your house on the market for a few weeks provided everything goes smoothly and you have potential buyers coming to see your home on a regular basis.  Bottom line is, a house is worth what someone is willing to pay in a specific circumstance such as a traditional listing of a very nice house vs. a house that needs repairs and a seller wants to close fast.

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.”

Understanding assessed value can be a bit confusing.  County property accessors give values to homes for tax purposes; however, these values are not reflective of changes in market value in the short term.  Assessed property values chase market value.  As of this writing, assessed values have all gone up in Salt Lake County, Davis County and Utah County.  This follows 2 years of fast home value appreciation.

Appraised Value:

But wait, there’s more. Your appraised value can differ from both of these.  An appraisal is done by a licensed professional who rigorously checks all aspects of the home. While they might be 100% correct, this is still the opinion of one.  Whereas other methods are mathematically calculated based off of your home’s history and market conditions.   The appraised value and the CMA will probably give you the closest true value of your house, but keep in mind it also takes the longest to get your house sold looking for top of the market value.

What The Internet Has To Say About It:

The large real estate sites have their own formulas for determining property values.  These values are broad, and based on market conditions and information entered by users on the site directly.  They do not always accurately reflect YOUR home personally.  Think of it as Kelly Blue Book for cars.  It is a close guess but determining what the ACTUAL market value can be much different. People report seeing these numbers off by $20k, $50k and even more!  This is especially true in Utah because most brokers DO NOT give the actual SOLD amount to sites like Zillow and Trulia.  Those sites are kind of guessing about the value of most Utah houses on their site.   

What it Means For You As A Seller:

Do your homework! Make sure you have all the numbers listed above and understand terms such as the equalization ratio and fair market value.  Make sure you are working with a true professional who can help you to accurately determine the market value of your home.

Setting a great asking price is critical. You do not want to set it too high and have to repeatedly lower it to get buyers in the door. Your pricing history is public information, and repeatedly lowering your price can make buyers think there is something wrong with it.  And for obvious reasons, you don’t want to set your asking price too low.  To get the price you want you must exercise patience and make sure you are working with a true professional in Salt Lake City.  We can help you with a realtor if that is the direction you want to go.  Do you want to sell your house fast no mater the repairs the house needs?  Call Gary Parker at 801-382-9199 today. 

If you want to learn more about the best ways to sell your Salt Lake City home, send us a message here or give our office a call now! (801) 382-9199

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