My name is Peter Westbrook. I am the owner of Westbrook REI and over the past 10 years I have looked at thousands of houses to determine the market value of houses that I have purchased for cash. I have witnessed “real estate” professionals stammer and stumble over the differences in property values even when the houses were next door to each other.
There is one thing to remember, the the most important detail in selling any house is establishing the sales price and the first step is to determine its real market value. Most sellers look to the internet first to get an idea of value, but between the Internets top real estate websites, Zillow, Redfin and Trulia, they can differ by several thousands of dollars. There is also an accessed value of houses for property tax purposes and of course a competitive market analysis provided by most real estate agents are even different from that. So who’s right?
Is it any wonder most homeowners are confused . If you REALLY want to know what your Stockton house is worth, you can pay to have an appraisal done. An average appraisal cost approximately $400.00 in Stockton. A real estate agent or investor agent should be able to provide you with detailed Competitive Market Analysis report, letting you know what is going on in your neighborhood. Knowing the differences in these home values can help you establish your ideal asking price!
What is Market Value vs Assessed Value in Stockton
Market Value by Definition:
As defined by Fannie Mae, “the market value is the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”
This is the amount you can expect to get if you keep your house on the market for a few months provided everything goes smoothly and you have potential buyers coming to see your home on a regular basis.
Assessed Value by Definition:
According to Realtor.com, “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 is confusing. County property assessor’s give values to homes for tax purposes, however, these values are not reflective of changes in market value. The difference between the assessed value and the market value is known as the equalization rate. This rate is used by the county to figure your actual property value.
Your appraised value can differ from both of these. An appraisal is done by a licensed professional who compares all aspects of the home. While they might not be 100% correct, it is still the opinion of one, this is generally the most reliable source of determining a houses market value. Whereas other methods are mathematically calculated based off of your home’s history and market conditions.
What The Internet Has To Say About It:
As mentioned earlier, the Internet’s large real estate sites have their own formulas for determining property values. These values are broad, and based on algorithms that compare actual sales data and information entered by users on the site directly. They do not always accurately reflect YOUR homes value. It is a close guess but determining what the ACTUAL market value can be much different. People report seeing these numbers off by $10k, $70k or more!
What it Means For You As A Homeowner:
Do your homework! Make sure you have all the numbers listed above and understand terms such as the 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 Stockton.