UNDERSTAND THE DIFFERENCE BETWEEN ASSESSED, APPRAISED, and MARKET VALUE IN HARRIS COUNTY, GA
Say you’re looking for a new home to move your family and fell in love with a beautiful three bedroom, two bathroom home in Pine Mountain.
After you discuss your plans with a real estate agent in Harris County, GA, you decide to make the leap and put in a bid. How do you figure out how much to price your bid?
APPRAISED VALUE IS THE PROFESSIONAL VALUE
The appraised value of a home takes into account data such as the neighborhood, value of similar homes in the area, to the layout of the parking lot to arrive at a final number. It is the price that the bank places on a listing.
This number is important because it’s what banks and lenders use to determine mortgage and loan rates of your home (we discussed the differences between mortgage rates here). The appraised value is a precise number.
So while the appraised value should factor into your home purchase, it is not necessarily how much you’ll pay for a home.
MARKET VALUE IS WHAT THE HOME SELLS FOR
The market value is the price of home will sell for in the open market. This is where the saying “location, location, location” comes into play. But there’s more to determining the market value including the condition of a home, and of course, the supply and demand.
Sellers can keep an eye on market value by looking at sales prices of comparable homes in the same neighborhood. Buyers should look at similar homes sold within 30 to 60 days.
Certain sellers may price their home higher than average homes if they remodeled a room or installed other upgrades. Knowing the market value of homes in the immediate area will help buyers negotiate a better deal.
ASSESSED VALUE IS FOR TAX PURPOSES
The assessed value is determined by a tax assessor to make sure that the is getting fair property taxes from the home owner. Since these assessments can be spread out as much as three years, the assessed value of a home often has little to do with the market value.
Most of us only see, or care about the market value of the home, but buyers especially should be aware of future property taxes. The three values work can also together. The appraised value can protect lenders and home buyers from artificially high prices.
Appraised, market, and assessed value are each determined through different factors and say something different about a listed home. And it is also important to note that determining each value is an imperfect science.
No one number should change your opinion over whether to buy for your dream home in Pine Mountain. Keep in mind that you can negotiate the list price, but the other two values are set. And understanding all three values should influence how you go about your bid.
Do you have any interesting tidbits on Harris County, GA history? Call me at 706.662.0125, or email me today to find out! Check out more of my available listings in Harris County, GA for Waddell Realty.