How Do Assessed Value and Market Value Differ?
Do you know the difference between assessed value vs. market value?
If you think assessed value and market value have any correlation with one another, then you are wrong!
You will discover the difference between assessed and fair market real estate values as you read further.
Over the last thirty-six years, while working as a Massachusetts Realtor, one of the misconceptions that I routinely come across is people who like to draw a definitive correlation between a home’s assessed value and its market value.
Let’s set the record straight – there is very little correlation between the two figures in most circumstances.
In fact, some of the biggest perpetrators who misuse this information are Realtors themselves!
Of course, a Realtor who will discuss a home’s market value to its assessed value will only do so if it sheds a positive light on the property they are marketing.
Unfortunately, the myth of assessed Real Estate values having a strong correlation to their present market value persists because of this.
The general public often gets confused about this because some Realtors fail to educate their clients that there is a big difference between an assessed value and market value.
Looking at assessed values is about as good as using Zillow.com to figure out what a home is worth! If you have researched Zillow, you know how inaccurate home values on Zillow can be.
Real Estate Agents Are Often To Blame for Assessed Value vs. Market Value Misconceptions
When the real estate assessed value the town places on a home is higher than what a property is on the market for, you will often see a Realtor’s advertisements that say something like this “Come to see this bargain home that is priced $100,000 less than the assessed value”.
This immediately tells me that the Realtor either is not educated on property valuation or believes there will be someone ignorant enough to think the home is the bargain of the century. Someone that…