The terms “assessed value” and “market value” are thrown around a lot during the Real Estate process, but they’re not the same: do you know the difference between them? Keep reading to find out.

Assessed Value

The assessed value of your home is a formal assessment that can come from the city or by an appraiser (e.g. a bank). For tax purposes, your city does an annual assessment to identify the value of your home. A third-party company (such as a bank) is hired to assess for an appraised value. To get an appraised value, appraisers have different approaches such as comparison, breakdown and rebuild cost.

Whether you’re buying or selling, we have a guide to help! Download our real estate e-books right here.

The Market Value

The market value is essentially the amount the buyer is willing to pay to purchase your home. This value is established by comparable sales in your neighbourhood, which would reveal the selling price of similar properties and how long these properties were on the market.

There are three major types of a Real Estate market; a sellers’ market, buyers’ market and balanced market.

  • If houses sell in less than two and a half months, it’s a seller’s market, as it indicates that inventory is low and that demand outpaces supply.
  • If the inventory moves between two and a half to four months, it is a balanced market.
  • Anything above four months is a buyer’s market.

If you are in the market and are thinking of selling, you have to understand where the market is at for your home. You can quickly go to the city’s website or get a third-party appraisal to get an assessed value. Still, the price you may get can be way different from the market value of your house, which you can obtain from a Real Estate professional, which will help you price your property competitively.

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Our two cents

We know that the Real Estate process can be confusing and complicated, so we want to work with you to help take some of the stress away. When you work with us, we can help make this process a little easier. If you’re ready to buy your new home—and/or sell your present home—give the Lisa Hartsink team a call. We can guide you with our extensive industry knowledge, experience and commitment to meeting your unique Real Estate needs. From the very start of your search to beyond the day of closing–whether it’s a house, townhome, condo, cottage, farm or commercial property that you are looking to invest in or sell, we can help.

Contact us today at 905-873-9944 or info@lisahartsink.com.