When it’s time to sell your Front Royal 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. An agent should be able to provide you with detailed CMA reports, letting you know what is going on in your neighborhood. Knowing the differences in these home values can set you set your ideal asking price!
What is Market Value vs Assessed Value in Front Royal
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 requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”
Essentially, this figure represents the sum you can anticipate receiving if you maintain your house on the market for an extended period, presuming all transactions progress smoothly and there is a consistent influx of prospective buyers viewing your property regularly.
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.”
Grasping the concept of assessed value can sometimes prove perplexing. County property assessors assign values to homes primarily for taxation purposes; however, it’s important to note that these values may not accurately mirror fluctuations in market value. The variance between the assessed value and the market value is commonly referred to as the equalization rate. This rate serves as a key determinant utilized by the county to ascertain your property’s genuine market value.
Appraised Value:
However, there’s an additional layer to consider: the appraised value, which can diverge from both the estimates provided by real estate websites and the market value. An appraisal entails a comprehensive evaluation conducted by a licensed professional who meticulously scrutinizes every aspect of the property. Although an appraiser’s assessment may be deemed accurate, it’s crucial to recognize that it represents the opinion of a single individual. In contrast, other valuation methods rely on mathematical calculations derived from your home’s historical data and prevailing market conditions.
What The Internet Has To Say About It:
Major real estate platforms employ proprietary algorithms to compute property values, which are derived from broad assessments influenced by prevailing market dynamics and user-inputted data directly submitted on the site. However, it’s important to acknowledge that these estimates may not always align precisely with the unique characteristics of your home. Analogously, it’s akin to consulting the Kelly Blue Book for cars; while it offers a ballpark figure, the actual market value can vary significantly. Instances have been reported where these estimates deviate by substantial margins, sometimes amounting to disparities of $20k, $50k, or even more.
What it Means For You As A Seller:
Engage in thorough preparation by diligently researching and familiarizing yourself with essential figures and concepts, including but not limited to, the equalization ratio and fair market value. It’s imperative to ensure that you possess a comprehensive understanding of these crucial elements. Collaborate with a reputable and knowledgeable real estate professional who possesses the expertise to assist you in accurately assessing the market value of your home. Entrusting this task to a seasoned professional ensures that you receive precise guidance throughout the valuation process, thereby enabling you to make informed decisions regarding the sale of your property.
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 Front Royal.