Home Buying in 33573>Question Details

Judy Bellamy, Home Buyer in Sun City Center, FL

When buying a home what is the difference between market value and assessed value?

Asked by Judy Bellamy, Sun City Center, FL Thu Apr 28, 2011

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4
Judy,

This is a very commonly misunderstood concept......the assessed value is the value of a property for tax purposes. This value is by no means an accurate reflection of the properties worth.

The market value of a property is theoretically the highest price price a motivated buyer is willing to pay and the lowest price a motivated seller is willing to accept for a specific property.

I hope you find this information helpful.

Bill
2 votes Thank Flag Link Fri Apr 29, 2011
Assessed Value - Value placed upon property for property tax purposes by the tax assessor.

Market Value - The highest price a willing buyer would pay and a wiling seller accept, both being fully informed, and the property exposed for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time.

Source: Financial Real Estate Handbook, Sixth Edition
1 vote Thank Flag Link Fri Apr 29, 2011
Market value is the price a buyer is willing to pay and the seller is willing to accept.
Assessed value is what Uncle Sam says you will pay taxes on.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Fri Apr 29, 2011
Hi Judy,

If you're looking at the Hillsborough County Property Appraiser and Property Tax Collector's value this may not be in the ballpark of what the current market value is.

Your Realtor can give you a detailed analysis of recent sales of similar properties (only go back 6 months) and based on the upgrades or improvements this is what you will use to determine the market value. If you are getting a mortgage to buy your home, your lender will also charge you a fee for their appraiser to determine the current market value.

Also if you look at the tax collector's website and you see a different market value and assessed value it will because the current owner has filed for a homestead exemption discount. We have a "save our homes" discount on owner occupied property where an owner has filed for homestead exemption. It only allows the "assessed value" to increase no more than 3% per year. Some very long term owners may pay significantly less than the next owner will pay. Once a property changes ownership the new owner will pay based on the "market value" less any homestead exemptions.

Hope this helps.

Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
http://www.SoldOnTampa.com
0 votes Thank Flag Link Fri Apr 29, 2011
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