Are you wondering about the tax-assessed value, or Estimated Market Value, of your home, and how it was determined by your local assessor? Here are insights you can use as you determine the accuracy of this estimate and your home’s current value.
Today’s market vs. yesterday’s market
First, a quick recap: you pay your 2022 taxes in 2023. As a homeowner, your 2022 Estimated Market Value will be used to calculate your share of the local property tax levy. Your Estimated Market Value is determined using historical sales data and mass appraisal techniques.
Each year’s appraisal is determined and sent in the mail by spring to be used in the following year’s tax returns. So, for example, the value you use now (in 2023) will have been determined as long ago as January 2022. But most areas in Minnesota and western Wisconsin have seen significant price gains since that time span.
For example, the current median home price in the Twin Cities metro area is $342,000. Meanwhile, the median price in the same area in January 2022 was $332,500. By relying on their most recent Estimated Market Value to price their home, the average Twin Cities homeowner may be shortchanging themselves by up to $10,000.
Your home vs. your neighbor’s home
When your assessor creates your Estimated Market Value, it is based upon a mass appraisal of similar, recently sold homes in the area. That means that even if your home has a brand-new luxury kitchen remodel, its estimate may be based in part off the sale of a nearby home with a 1960s avocado green stove and peeling laminate countertops.
Conversely, if your home is the one that desperately needs an update, your Estimated Market Value may be higher than the price you should expect if you put your home on the market.
Move forward with a customized opinion
If your Estimated Market Value is making you hesitant to sell, consider getting a second opinion. Edina Realty offers a free comparative market analysis using current data and market conditions. And unlike automated online estimates, our market experts will analyze your home’s exact location and condition to ensure they’re giving an honest, customized analysis of your home’s potential resale value.
Reach out today for a free home value estimate. Maybe your home is worth more than you think.
