Assessed Value vs Market Value

Have you ever wondered what the difference is between an Assessed Value and a Market Value?

Assessed Value

The assessed value of your home can come through an assessment by the city or by an appraiser.

Every year, the city does an assessment to identify the value of your home to know the amount of taxes you need to pay. For an appraised value, a third-party company is hired to do the assessment. To get an appraised value, appraisers have different approaches such as comparison, breakdown and rebuild cost.

Market Value

Market value is essentially what a buyer is willing to pay for your home in its current condition in today's market. The value of your home may be pushed around based on what's happening in the market.

The first thing you need to check to know your property’s market value are the months of inventory which shows how long it takes to sell a home in a certain price range and neighbourhood.

There are three major types of a real estate market; a sellers market, buyers market and balanced market. If houses sell in less than two and a half months, it's a seller's market. If the inventory moves between two and a half to four months, it is a balanced market. Anything above four is a buyer’s market.

The other factor that affects the market value is supply and demand. If supply is low and demand is high, you will mostly see lower months of inventory which forms a seller's market. If there is high supply and low demand, buyers can see a lot of options as they're looking, so it is a buyer’s market.

Homebeat

If you are in the market and are thinking of selling, you have to understand where the market is at for your home. You can easily go to the city's website and get an assessed value, but the price you may get can be way different from the market value of your house.

Send us an email at info@chamberlaingroup.ca and ask us to set you up on a homebeat so we can help you out! Homebeat will allow you to understand the market value of your property so you can price it the right way!