What’s the Difference Between Assessed, Appraised, Market, and List Values?
August 24th, 2011 -- by JonMoultrieWhen it comes time to sell a home, sellers often get confused by the different terms referring to the value of their home. How are the assessed value, the market value, the appraised value, and the list price determined?
Should they all be the same? If not, what’s the difference?
Assessed Value
Before deciding to sell, homeowners have access to the assessed value of their home through their home tax papers. This amount determines how much tax should be paid on the property. This value is evaluated by the local city or town tax assessor based on the size of the house, number of rooms, size of the lot, and other factors.
Market Value
Your Realtor will analyze the market, evaluating similar properties that have sold and those that have not sold. The market value of your property is the probable price the Realtor thinks the home will sell for in the current market. Note: this value could be significantly different than the assessed or appraised value depending on the current condition of the market.
List Price
Most Realtors recommend that the list price of a home be close to the market value if the seller would like to sell in a timely manner. List prices that are higher than the market value can aversely affect the ability of a property to sell.
Appraised Value
When someone decides to buy your home, they have to get an appraisal. Lenders request this value and it is factored by an Appraiser. Various factors affect this value, such as recent sales of similar properties, repairs needed, and other knowledge of the local market. This value will determine how much a lender it willing to loan against the property.
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Tags: Appraised Value, Market Value in Memphis, Market Value of Real Estate