Homeowners and home buyers often wonder about an accurate approach to assessed home values. If you're trying to buy or sell a home, you may have already found out the assessed home value for the property in question. Perhaps the result wasn't what you wanted or expected. Maybe the house you needed to put up for sale is assessed at a value much lower than what you want, or the one you own or want to buy has an assessed value that makes its property taxes too high for your budget.
How can the value of one home vary so widely from another home that seems comparable for all practical intents and purposes? It has to do with the formula used to find assessed home value, and the economic times following the housing market crash that affected so many countries throughout the world.
Factors in assessed home value
It is critical to understand what assessed home value is and how it differs from an official assessment before a sale. The assessed home value is generally set by the county assessor (or someone with a comparable role) in your area. This is the amount for which you'll be charged annual taxes, and it is not necessarily the market value. In general, the assessed home value is found by evaluating your home's square footage, the size of the lot, and any improvements that have been made, such as landscaping or outbuildings. Selling prices of other homes in the neighborhood generally play a role. In some areas, those sometimes are still artificially inflated due to exorbitant prices during the real estate bubble -- or in neighborhoods that had large numbers of foreclosures, they might be artificially low.
Assessed home value vs. sale price
The assessed home value may be similar to the price that you can sell a home for (or what you expect to pay for a new one), or it could be radically different. Factors such as structural soundness, interior luxury upgrades, and other similar things may boost the sale value of a home, but they don't necessarily boost the assessed value. For this reason, it's always essential to know the home's assessed value, but to also bring in an appraiser who will take all of these different factors into account for the home's market value.
In order to recognize huge returns on your real estate investment, it pays to follow these top 10 real estate investment tips. |
Are you considering investing repair money into an estate that you do not actually own, or have exclusive rights to own? Be cautious, there are a lot of what-ifs involved,especially if you are meant to inherit the home.. |
Commercial real estate investing can be one of the most lucrative investment types, but it can also be a gigantic liability if you don't do it properly. Make sure you consider this commercial real estate investing advice before you make a big investment that you might regret. |
Considering converting a multi-unit home back into a single-family dwelling? Before you buy, there are a few things to consider. |
Apartment building renovations can make your investment more profitable. Here are the best renovation options. |
Commercial real estate investing can help you build wealth, but these investments involve risk, and you'll need to have a plan to help protect yourself. |
Real estate investment deals are tricky to navigate without experience and support. Whether you're just getting your feet wet or have closed a few deals, consider joining a real estate investment club. |
A well-thought-out business plan is essential when applying for a loan to buy rental income property. |
Know what to look for and how to find value when buying investment property. |
Learn how to avoid the most common traps real estate investors make. |
If you want to purchase an investment property, check out our comprehensive guide with helpful information on reasons to make an investment in rental property, when not to buy investment property, how to protect your rental property investment and more. |
Learn the most popular real estate terminology so you can be well on your way to sounding like you know what you're talking about. |
If you want to buy investment property, learn how to spot pitfalls in potential properties and in your own business plan. |
What goes up must come down, and vice versa -- especially when it comes to examining the real estate market. Supply and demand are potent factors in assessing real estate m...click here for more. |
You're about to put in an offer on a home you love. Here's how to determine if it's worth the money. |
Protect your rental property investment by learning all you can about potential tenants and preparing for vacancies. |
In real estate, a growing investment strategy is what is known as bird-dogging. Often referred to as -flipping,' this type of property investment involved the purchase of a run down property selling at a discount. |
It looks so easy on TV: Investor buys run-down house, fixes it up and sells it for a huge profit, a process commonly known as "flipping houses." But actually making money flipping houses is no easy business. It can be lucrative if you know what you're doing, but you could lose your shirt if you go in unprepared. |
Commercial real estate can be risky. Here are tips on how to research possible investments before you take the plunge. |
Real estate appraisers can be a real benefit to buyers, sellers and even to homeowners. Read on to learn what some of those benefits are. |
Investigate these options to pay for your home renovation. |
You can choose many different ways to be a real estate investor. You can invest as a shareholder, as part of a group, as a homeowner or as a landlord. Each of these methods of...click here for more. |
A real estate contract and a quitclaim deed can cause major problems to a buyer. |
Find out if you've got the skills and the means for investing in real estate |
If you've considered investing in real estate by buying apartment buildings, here's what you need to know. |
To succeed in investing in the real estate property market, follow these six basic real estate investment tips. They will help you buy, manage, and maintain your property p...click here for more. |
New real estate investors may want to look at Real Estate Investment Trusts (REITs) instead of buying real estate. Here's what you need to know first. |
Need more space? Many city dwellers are opting to buy the condominium next door. |
What is a silent real estate investor? A silent real estate investor, or sleeping partner, is someone who invests money into a real estate property but does not become involved with managing that property. |
There are several important questions to ask your broker before buying commercial real estate. Your prospective investments may include office buildings, strip malls, retai...click here for more. |
Investment in rental property might help you diversify and earn steady income if the conditions are right. |
