When it’s time to sell your Little Rock home, it can be difficult to understand what your house is actually worth. The most accurate way that you can determine the value of your home is to pay to have it appraised. Another must is to look at the comparable homes in your neighborhood and see what they are selling for.
What is Market Value vs Assessed Value in Little Rock
This is the value or price that is out on your property based on the marketplace. What this means is the price that other homes are selling for in your market will determine what the market value of your home is. This can fluctuate depending on what type of market cycle you are in.
Assessed value is just a formal value given to your property for tax purposes. It is not determined by the marketplace. The difference between the assessed value and the market value is known as the equalization rate. This rate is used by the county to figure your actual property value.
The last type of value is determined by a professional appraiser who will visit the house and inspect it form top to bottom. After the inspection, it is given a value. Keep in mind, this is based off the opinion of one person and is not based off the marketplace.
You’ve probably looked up homes on Zillow before and notices that they assign properties a “zestimate“. No one really knows the exact formula of how these websites come up with their values but in our experience they have been inaccurate. This is because it does not take into account that actual condition of your home – it has no idea what upgrades you have done or what repairs it needs.
What it Means For You As A Seller:
Don’t believe the first number you see. Understand the difference between these values and contact a professional if you still don’t feel confident.
When you set your listing price you want to make sure you get it right the first time. Sellers can see when you reduce your price and that never helps the buyer in negotiations. To get the price you want you must exercise patience and make sure you are working with a true professional in Little Rock.