The Truth About How Much Your Home Is Really Worth

Here’s what you need to know about determining your home’s value. 

As a real estate agent, one of the most common questions I’m asked is, “What’s the value of my home?” This question is a little tricky because there are different ways to measure value. The three main ones are assessed value, fair market value, and appraised. Today I’ll talk about the difference between these terms so that you can understand what your house is truly worth. 

First, assessed value is what the city uses to determine how much you pay in property taxes. This has no bearing on the true value of your home. The city tries its best to figure out what your home is worth, but they just don’t have the time or resources to do an accurate job. 

"Fair market value should matter most to you."

Next is the appraised value. This is what a professional home appraiser says your home is worth. During most real estate transactions, the bank or lender your buyer works with will require an appraisal to make sure they’re paying for a fair deal. However, what the appraiser says your home is worth may or may not be what you and your buyer agreed to pay for it.

Finally, there’s fair market value. This is whatever a buyer is willing to pay for your home. At the end of the day, this is the only value that truly matters because it’s the only money you’ll actually get to put in your pocket after a sale. 

Hopefully, this cleared things up. If you have questions about this topic or anything else, please call or email me. I am always willing to help!