If you’re a homeowner in Houston looking to sell, you’ll want to understand both the assessed value vs market value of your property before listing. While these two amounts are related, they are calculated differently. Here’s an overview of assessed value versus market value and how they impact what your Houston home is worth.
What Is Assessed Value?
In Texas, a property’s assessed value is determined by the county appraisal district. Appraisers look at your home’s attributes like square footage, age, condition, and amenities. They also consider sales prices of comparable properties in your neighborhood. Based on this data, the appraisal district assigns an assessed value to your home.
This assessed value is used to calculate your annual property taxes. Generally, assessed value is close to the market value, but lags a year or two behind. Harris County reappraises properties every 1-3 years to catch up with shifting markets.
For example, if you purchased a home for $250,000 in 2021, the 2022 assessed value may be around $275,000 based on sales data from 2020 and 2021. This helps keep assessed values in line with current market conditions.
What Is Market Value?
A home’s market value is essentially what a buyer is willing to pay for it in today’s real estate market. Market value is more variable than assessed value since it reflects immediate supply and demand.
Factors like low inventory levels, high buyer demand, and bidding wars can quickly drive up market prices. The pandemic led to steep market appreciation in Houston, so your home may now sell for $100,000+ over its assessed value from just two years ago.
Determining an accurate market value means looking at recent sales of similar homes in your area. An experienced Houston real estate agent will compare your home’s size, age, upgrades, location, and condition to active listings and recently sold homes.
This market data helps agents advise you on a competitive list price and price range for buyers. Since the market shifts rapidly, working with an agent provides real-time perspective on what your home is truly worth today.
Assessed Value vs Market Value: Why Market Value Matters More Than Assessed Value
When selling your home, the market value carries more weight than assessed value. Buyers and real estate agents base offers on a property’s actual value within the current market.
Listing your home far above its market value because the assessed value is lower means it may sit unsold for months. This can lead to price reductions and seller frustration.
On the other hand, pricing too far below market value will attract more buyers but potentially leave money on the table at closing. This is why an accurate market valuation by an experienced real estate professional is so essential.
Partnering with a knowledgeable Houston realtor ensures your home is priced just right to maximize the sales price and successfully complete the transaction. Relying purely on your home’s assessed value from the county can sell you short in today’s shifting market.
Knowing both the assessed and market values will give you a fuller picture of your home’s potential on the open market. With an agent’s expert guidance, you can fine-tune your listing price to attract buyers who will appreciate your home for what it’s truly worth. Be sure to research the accuracy of Zestimates to fully understand the home valuation assessment process.
What Houston Realtor Can Give You A Free Home Valuation?
As leading Houston real estate agents, we have the market insights, data, and expertise to provide houseowners like you with an accurate assessment of your property’s current value.
Connecting with us ensures you receive:
– A customized Comparative Market Analysis pulling the latest comparable sales.
– Precise pricing recommendations based on current market conditions.
– Guidance on how to prepare your house to maximize marketability and achieve top dollar.
We’re here to provide the clarity and confidence you need to price your Houston house right. Let’s connect to discuss your house’s value today!