You´re in the market for a home and you’ve found what you’re looking for: but what is the value of the home?
A lot of people try to figure out what a property is worth by looking at the tax assessed values. But when you are looking at the assessed value vs market value, there may be a big difference between these two numbers.
Though Florida property appraisers strive to properly assess each home’s value, the state Department of Revenue allows for several differences between a home’s assessed value and its fair market value.
MARKET VALUE DEFINITION:
Market value is the most probable price as of a specific date (the date of sale) that a property with all its rights should sell after reasonable exposure to buyers in a competitive market with the sellers under no undue duress (meaning the sellers aren’t forced to sell).
The best way to find out the market value of a home is the sales comparison approach. The sales comparison approach compares recently-sold local similar properties to the subject property. Price adjustments are made for differences in the comparable and subject property.
ASSESSED VALUE DEFINITION:
Assessed value is the value of a property as of a certain date (usually January 1st) according to the tax rolls of your local government jurisdiction (county or city). This value can differ from the market value. The assessed value of a home is not determined on an individual basis as the appraised value is. Rather, the tax assessor determines the value of a home based on a formula of recent home sale prices of comparable properties. Different counties and cities use their own formulas to determine what portion of the value of your home is subject to taxation.
By far the best method for a home buyer to get an idea of the true value of a home is to ask a local Real Estate Agent who knows the market.