Selling your home in North Central Illinois can be a bit puzzling when it comes to figuring out its value. If you’re truly eager to find out its worth, you have the option to hire an appraiser for a fee. Alternatively, a real estate agent can offer you comprehensive reports known as Comparative Market Analysis (CMA) that provide detailed information about the current market conditions in your neighborhood. Having a clear understanding of the difference between market value vs Assessed value can help you determine the perfect asking price for your home.
What is Market Value vs Assessed Value in North Central Illinois
Market Value by Definition:
According to Fannie Mae, market value refers to the most likely price at which a property would sell in a fair and open market. Both the buyer and seller are assumed to act wisely and have adequate knowledge, without any external influences artificially affecting the price.
In simpler terms, it represents the amount of money you can reasonably expect to receive for your house if you decide to sell it. This estimation assumes that you keep your house available for sale for a few months, during which interested buyers regularly visit and consider purchasing your home. It also assumes that the selling process progresses smoothly without any unexpected obstacles.
Assessed Value by Definition:
According to Investopedia, “The assessed value of a property is the amount of money it is valued at for tax purposes. It is determined by county property assessors who consider factors such as comparable home sales and inspections. However, it’s important to note that assessed value doesn’t necessarily reflect the current market value of the property.”
The difference between the assessed value and the market value is called the equalization rate. This rate is used by the county to calculate the actual value of your property. Understanding this concept can be a bit confusing, but it essentially means that the assessed value is used for tax purposes, while the market value represents the property’s current worth in the real estate market.
Appraised Value:
Here’s an additional factor to consider. Your appraised value can vary from both of these estimates. When it comes to appraisal, a licensed professional thoroughly examines every aspect of your home. Although their assessment could be completely accurate, it remains the perspective of a single individual. On the other hand, alternative methods rely on mathematical calculations that take into account your home’s past performance and the prevailing market conditions. These methods aim to provide a more objective evaluation of your home’s value.
What The Internet Has To Say About It:
Major real estate websites use their own algorithms to calculate property values. These values are general estimates that consider market conditions and data provided by users on the site. However, they may not precisely reflect the value of YOUR specific home. Imagine it like the Kelly Blue Book for cars, which provides an approximate value but might not accurately represent the actual market value. Many individuals have noticed significant discrepancies between market value vs assessed value, with differences ranging from $20,000 to $50,000 or even higher!
What it Means For You As A Seller:
Complete your homework thoroughly! Ensure that you gather all the necessary numbers provided above and grasp the meaning of key concepts like market value vs assessed value. It’s crucial to collaborate with a genuinely knowledgeable expert who can assist you in precisely evaluating the current worth of your residence. By doing so, you’ll be equipped with the right information to make informed decisions about your property.
It is extremely important to establish an optimal asking price for your property. It is crucial not to set it too high initially, as this may require you to continuously reduce the price in order to attract potential buyers. Keep in mind that your pricing history is accessible to the public, and consistently lowering the price might create the impression that there are underlying issues with the property. On the other hand, it is also important not to set the asking price too low, as this could result in undervaluing your property. In order to achieve the desired price, it is essential to be patient and collaborate with a reputable professional who specializes in the real estate market of North Central Illinois. Working with such an expert will greatly increase your chances of success.