You may take your Estimated Market Value, or tax-assessed value, as fact — after all, it’s created by a city or county assessor and it helps to dictate your tax payment every year. But if you consider our fast-changing market and your home’s unique location and upgrades, you may realize that your Estimated Market Value may not accurately reflect the true value of your home in today’s market.
How your assessment is created
According to the Minnesota Department of Revenue, your January 2017 Estimated Market Value was determined off nearby home sales and market stats gathered between October of 2014 and September 2015.
During that time, Northstar MLS reports that the median sales price of single-family homes in our 13-county metro area increased from $221,000 (Sept. 2014) to $235,000 (Oct. 2015). But the current median sales price of the average metro home is much higher still, at $251,000. Additionally, homes are currently selling at 98.5 percent of their asking price, and some eager buyers are entering multiple offers, which drives sales prices even higher.
Additionally, appraisers don’t go door-to-door to assess each home individually. They use a mass appraisal process. This means that if you have the nicest home on the block, or the home that needs the most upgrades, your Estimated Market Value may be off by quite a bit.
Understanding your true market value
The numbers used to determine your Estimated Market Value were determined via a mass appraisal that took place as many as 28 months ago. If you use this assessment to dictate your home’s listing price, you may be selling yourself short (literally).
If you’d like a free second opinion from a true market expert, we can help. Edina Realty offers a free comparative market analysis, using current data and market conditions — and there’s no obligation or hassle if you decide you’re not ready to list.
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