If you’re considering selling your home in Atlanta or just curious about its worth, you’ve probably come across two terms: assessed value and market value. They might sound similar, but they mean different things. Knowing the difference can help you make smarter financial decisions. Let’s break down these two terms.
What Is Assessed Value?
The assessed value is used by local governments to calculate your property taxes. It’s not what your home would sell for. Instead, it’s a number assigned by a tax assessor based on several factors.
How it’s determined:
- The market value of your home (what comparable homes sold for recently)
- The home’s size, age, condition, and features
- Local property tax laws and rates
- Other comparable home values in the neighborhood
However, you’re not taxed on 100% of that value. Local governments use an assessment ratio, meaning they only tax a portion of your home’s estimated value.
Key Takeaways:
- Used for calculating property taxes
- Usually lower than market value
- Updated on a schedule (yearly or every few years)
- Can be appealed if it seems too high
What Is Market Value?
Market value is how much your home would sell for in today’s real estate market. Unlike assessed value, this is based on what a buyer is willing to pay.
It depends on:
- Recent home sales nearby (also called comps)
- Location, including neighborhood and school district
- The home’s features, upgrades, and overall condition
- The current housing market, demand, and mortgage rates
Ways to Find the Market Value:
- Online estimates
- Comparative Market Analysis (CMA) from a real estate agent
- Professional appraisal (often required for loans or refinancing)
Each method helps you understand your home’s fair market value, which is crucial if you plan to sell or refinance your home.
Why Does the Difference Matter?
- If You’re a Homeowner: You pay taxes based on the assessed value, not the market value. Even if market prices increase, your taxes won’t change immediately.
- If You’re Selling: The market value sets your asking price. Buyers don’t care about the assessed value. They look at what similar homes sold for recently.
- If You’re Refinancing or Using Home Equity: Lenders use the market value to determine your loan amount. A higher value means more equity and possibly better loan terms.
- If Your Tax Bill Seems High: You can appeal your assessed value. If it’s higher than equivalent homes, you might be able to lower your property taxes.
Final Thoughts
Understanding assessed versus market value helps you take control of your home’s worth, whether you’re planning to sell, refinance, or want to make sure you’re not overpaying in taxes. And when you’re ready to move, our team at Diamond Equity Investments is here to make it easy.
Do you need to sell a house fast in Atlanta? We can close in as little as seven days! Our Atlanta cash home buyers will guide you every step of the way. There are no fees, repairs, or stress when working with us.
If you’re ready to sell and want to avoid the hassle of listings, inspections, or long waits, Diamond Equity Investments can help. We buy houses in Atlanta for cash, and our process is fast, fair, and simple.
