Real estate is a valuable asset and traditionally a sound investment. The housing market has significantly shifted in the last few years, so it’s prudent for homeowners to keep an eye on changing market conditions and their fair market value (FMV). Your FMV and your assessed tax value (ATV), affect you directly and indirectly, even if you’re not selling your home. 

Fair Market Value is the valuation of your home compared to others on the market and recent sales and trends in your neighborhood, factoring property condition, location, amenities, improvement(s) or lack of, and ultimately a meeting of the minds between a buyer and seller upon an agreed price. Both values are a vital component that affects the outcome in more ways than one when selling your home. 

Assessed Tax Value (ATV)  is a valuation of your property by the tax assessor for purposes of computing and collecting property taxes. Tax assessors utilize a detailed tax formula of market values and apply tax rates for each property. ATV is typically lower than FMV, as fair market values fluctuate more frequently with the current housing market.  IF your ATV is significantly higher than your FMV you can check with the tax assessor’s office to verify your tax record and can possibly grieve your property taxes. It’s important to keep in mind that Improvements made to your property increase both your fair market and assessed tax value, so it’s important to have required permits on file with the building dept. 

To learn more about your current market value and assessed tax value, call me to further discuss and I’ll provide you with detailed information pertaining to your property.

Continue to send me your real estate questions as I welcome the opportunity to discuss in detail while providing additional resources to homeowners like yourself.