Assessments, Appraisals, Fair Market Value - what is the difference? - part 1 of a 4 part series
Homebuyers, home sellers, and property owners alike are often confused on the difference between Assessed Value, Appraised Value, and Fair Market Value. There was this funny cartoon that used to go around the office, here it is in full color.
But seriously, here is the official explanation on the differences:
ASSESSED VALUE: The value the municipality places on a property on which the taxes will be determined.
MARKET VALUE: The value that a buyer is willing to pay and a seller is willing to sell for under “normal” conditions (not related to the seller, not a distressed seller etc.).
APPRAISED VALUE: The value that an appraiser puts on a property after reviewing comparable sold and active properties. Appraisals are usually done for a bank to be sure they are making a good decision to loan money on that property, for a buyers purchase or an owners refinance.
At any given time, a property could have 5 different values:
Assessed Value, Fair Market Value, Appraised Value, and the value a seller would sell for, and a value a buyer would buy for!
Stay tuned over the next few Fridays for parts 2-4 of this series!
Part 2: Assessments - What They Mean To A Buyer
Part 3: Assessments - What They Mean To A Seller
Part 4: Assessments - What To Do If You Disagree
If you are confused on the value of your home, call me at 414-588-4907 or email me at Pat@PatTasker.com! With over 20 years in real estate sales in the suburbs of Greater Milwaukee, I can give you the most up to date information on getting top dollar for your home in today’s market!
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Pat Tasker
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