Why Is My Home’s Assessed Value Different From The Market Value?

This is a very common question we hear. Typically, a seller is either referring to their tax assessed value or a value they found on an online site like Zillow.

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Here is the answer – in the simplest terms, the market value of a home is what a buyer is willing to pay for, not what Zillow says it’s worth. In determining a home’s market value, a good real estate agent needs to factor in both the emotional and the rational value of a home. Online sites like Zillow only factor in data, like the number of bedrooms, bathrooms and square footage. Your city tax assessment only factors those same pieces along with what the real estate market is doing in general. Neither of these factor in the condition of your home or any emotional factors of your value. Why? Because they can’t see inside, and they cannot keep accurate tabs on the market at any given moment.

For example, a home with 3 bedrooms and 2 bathrooms but not a true master suite (a bedroom with the full bath attached) will negatively impact the emotional value of the home, but according to online sites and city appraisers a 2 bathroom is a 2 bathroom and they are all treated the same.

Ultimately, market value has to factor in significantly more than assessed value.