The difference between your tax value and you true home value?
You’ve received your property tax statement, and you’re wondering, “How the heck did they come up with this home value?” Today, we will explain the difference between an assessed value that you get for your property tax purposes and your home’s value, actual home value.
The assessed value is so that you pay your fair share of property taxes. The assessor and their team of appraisers will go through and give you a value. Now they break it up into two components, and I wanted to give you a warning or inside tip; it’s a lot different than how someone like myself will come and evaluate your home. First, they will look at the improvement value, everything vertical on your property, so your shops, your garages, swimming pool… Next, they will assess the land value, then add those together, and that’s your total value.
They do their best to be accurate in today’s marketplace, but they don’t do it every single day. They use comparable sales, and sometimes those similar sales are a few years old.
Your home’s value is actually what it’s worth today; it’s worth what someone is willing to pay. Generally speaking, you wouldn’t want to sell your home for the assessed value because that value might be lower than what you could get on an open market. However, some years you might want to sell at the assessed value..it just depends on if it’s a buyer or seller market.
In most places around Central Washington, the past year’s tax assessments went way up around Central Washington, and you’re probably freaking out over that, but don’t worry too much; most likely, your home’s market value is probably worth even more than that because your home’s market value is worth what someone is willing to pay. There’s low inventory and a lack of supply in today’s marketplace, so it’s a seller’s market. The lower the list, the higher someone’s willing to pay.
Often the demand is a function of interest rates; where you live is essential, and whether or not it’s a desirable area is also tied to demand. This last year in places like Texas and Florida, demand went way up during COVID because people were moving there, and there are some places in the United States where demand dropped.
Now we operate in North Central Washington, so Chelan County, Douglas County, Grant County, Kittitas County, Okanogan County, and our demand has gone way up because many people want to move here. That’s not going to change for the next decade. So demand will likely stay really high, and home prices will continue to reflect that.
If you’re curious about what your home’s worth, you know you can always reach out to our company. We always offer a no-obligation home valuation. Also, if you have a property value and you’re not quite sure about it, and you’re thinking maybe you pay too much in taxes, let us know. We can give you an idea of whether or not you’re in line with the value and whether or not you should go to the Board of Equalization or the Board of Reassessments to contest your assessed value. Every county has a process to reevaluate your property for tax purposes, but you will need to prove that through comparable sales and other factors. Please reach out to us if you need help with a reassessment; we are more than happy to help.
Call us at 509.670.5532 with your real estate questions or e-mail questions to firstname.lastname@example.org
Nick McLean Real Estate Group