Key takeaways:
- Both the Estimated Market Value and Taxable Market Value of your home are determined annually or every two years from county tax records
- These values determine your annual property tax, but they may not represent your home's true market value
- To determine the current market value of your home, you'll need to analyze local housing trends as well as your home's condition and location
Whether you're thinking of selling or just want to know your home's value, you may begin by looking at the property's Estimated Market Value or its Taxable Market Value. Here, we offer insights on how these assessments may differ from one another, and how to best determine the true value of your home in today's market.
Estimated Market Value vs. Taxable Market Value
Your home's Estimated Market Value comes directly from county tax records and is determined by the city or county assessor. These assessments can be up to two years old and are determined using historical sales data and mass appraisal techniques in order to establish the property tax for every property.
Meanwhile, your property's Taxable Market Value also comes directly from county tax records and is typically very similar, or even the same, as the Estimated Market Value. However, if the values vary, it is likely because the property in question qualifies for a tax exemption, deferral or value exclusion like a homestead.
When looking at homes for sale on edinarealty.com, you can find the Estimated Market Value and Taxable Market Value of a property in the Sales History & Tax Summary of a property's listing page.
How accurate are these calculations?
There are two main reasons that your Estimated Market Value (and Taxable Market Value) may not be fully representative of your property's true value in today's local market.
Since the Estimated Market Value is not the most current information on a property, it's considered a lagging indicator of market conditions and property values. For example, assessments for tax year 2015 (payable in 2016), were likely done between October of 2013 and September of 2014.
A quick peek into our local stats shows that the median home price in the 13-county metro area in October 2013 was $209,000. By April 2016, the exact same home segment showed a median home value of $240,000.* If a homeowner in the Twin Cities used only their most recent Estimated Market Value to determine their home's value when listing it for sale, they could be off by $30,000 or more.
Second, a property's Estimated Market Value is created by a county or city assessor via a mass appraisal. If your home stands out from the rest on the block due to its new roof, attic renovation or larger lot and three-car garage, it could be worth significantly more than the mass appraisal indicates.
How can I determine my home's true market value?
The truth about your home's value is relatively simple: Every property is worth what a buyer will pay for it at closing. To determine the correct market value (and listing price) for your home, it's important to work with a local expert who can evaluate your home's condition, local market prices and trends and more. To get a free, no obligation estimate of your home's value, reach out today.
You can also find more advice on selling by following #SellerInsights on Facebook, Twitter, YouTube and Instagram.
*Source: Northstar MLS
