WHAT IS A HOME’S MARKET VALUE VS ASSESSED VALUE?

To many, it doesn’t make sense that your home could count as two different values, one for the market value and one for the assessed value. However, it’s extremely common for these two values to be different when a home is going through the process of being sold.

The assessed value of a home tends to be lower than the market value of a home in Little Rock, Arkansas. Discover how you can use these two different phrases to your advantage!

WHAT IS A HOME'S MARKET VALUE VS ASSESSED VALUE?
Arkansas Cash Home Buyers

What Is Market Value?

The market value of a home is the price point that your home is most likely to sell at. It could sell for a higher price than the market value, based on current competition for homes in your area, or it could sell for slightly less than the market value. 

Typically market value is determined by the below four factors. 

  • External Characteristics: This involves the exterior condition of the home along with its style.
  • Internal Characteristics: The quality and style of rooms along with how energy efficient the home is. 
  • Supply and Demand: Are a lot of homes that are similar to yours on the market at the moment?
  • Location: Is your part of town a popular area that many people want to live in? 

What Is Assessed Value?

The value of home is assessed so that the government knows how much to charge the owner for taxes. Assessors look at what other homes in the area are selling for along with the value of recent improvements that you could have put into the home. 

The assessed value is usually lower than the market value because tax jurisdictions usually have a tax rate of 80%-90% of the value that the assessor arrives at.

Having problems keeping market value and assessed value straight? Call 365 Property Buyers at (501)369-0365 for help to ensure you get the most value of your home!

Cities in Arkansas where We Buy Houses

Alexander – We Buy Houses Alexander
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Bella Vista – We Buy Houses Bella Vista
Benton – We Buy Houses Benton
Bryant – We Buy Houses Bryant
Cabot – We Buy Houses Cabot
Conway – We Buy Houses Conway
Fayetteville – We Buy Houses Fayetteville
Fort Smtih – We Buy Houses Fort Smith
Hot Springs – We Buy Houses Hot Springs
Jacksonville – We Buy Houses Jacksonville
Jonesboro – We Buy Houses Jonesboro
Little Rock – We Buy Houses Little Rock
Maumelle – We Buy Houses Maumelle
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Paragould – We Buy Houses Paragould
Pine Bluff – We Buy Houses Pine Bluff
Rogers – We Buy Houses Rogers
Russellville – We Buy Houses Russellville
Searcy – We Buy Houses Searcy
Sherwood – We Buy Houses Sherwood
Springdale – We Buy Houses Springdale
Texarkana – We Buy Houses Texarkana
Van Buren – We Buy Houses Van Buren
West Memphis – We Buy Houses West Memphis
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