Keller Williams South Bay
Stephanie Arbolida, Keller Williams South BayPhone: (310) 892-5940
Email: [email protected]

Assessed Value Versus Fair Market Value

by Stephanie Arbolida 11/17/2019

Two terms that you may have heard when talking about real estate is fair market value and assessed value. These two terms are not the same or even interchangeable terms. 


The assessed value of a home can often be higher than the price the house is being sold. These properties can often be seen as a “bargain” in the real estate community. The problem is that this is often a red flag. The property may be overassessed by the town which means the taxes are higher than necessary. 


Homes can also be listed at a higher price than the assessed value. Contrary to popular belief, a low evaluated cost doesn’t mean that the value of the home is less than the asking price. The asking sale price for a property is based on many factors, none of which are what the town deems the property is worth. 


Fair Market Value


Fair market value is what a buyer is willing to pay with no outside influence. As a homeowner, the best way to determine the fair market value of your home is to look at what’s real estate agents call a “Comparative Market Analysis” or CMA. The agent will look at similar properties in the area that have recently sold- generally within the last six months. This analysis will often include things that the assessor doesn’t take into account when pricing a home.


The Appraisal


When you buy a home, and the appraisal is done for the lender when the buyer is obtaining a mortgage, the purpose is specific. The lender is protecting themselves and the buyer. The lender wants to be sure that the property they are lending money on has a value greater than or equal to the purchase price of the home. Appraisals are also done in this manner when homeowners are refinancing the house. 


Challenging Assessed Values


Often, homeowners will buy a property and then later challenge the assessed value of a home for tax purposes especially if the owner feels that the assessed value is worlds apart from the fair market value of the home. If you believe that the assessed value is out of sync with the fair market value of the house and out of line based on the values of another home in the town, you need to file what’s called a tax abatement. Your city or town hall has all of the necessary information for submitting these forms. From there, each city and town has their own timelines for how long the tax assessor has to address this.                  

About the Author
Author

Stephanie Arbolida

 You might be surprised to learn that I’m a third-generation Real Estate professional. I was introduced to Real Estate as young girl as my father, grandmother, stepmom and brother all worked in the Real Estate Industry. All doing something different which made me so versatile in my sales position. Although, I didn't plan on selling Real Estate it wasn’t until I wanted to start a family, that I then realized I should become a Realtor. You can say I've been selling Real Estate almost all my life, if you include all the years, I helped my family. Selling Real Estate truly became a passion of mine in 2015 when I had my first child. I got licensed right before my husband and I found out we were expecting, timing couldn’t have worked out any better for us. Although, I had my license I didn’t sell much for the first couple years. I did enjoy helping friends and family buy and sell Real Estate. In 2018 I decided to sell Real Estate full time. My business changed that year with the help of my family, friends and clients I was able to build a bigger business than I expected. Not only did I create a more amazing business for myself, I expanded and built my team, The Arbolida Group. I was also asked to join some amazing leadership communities and named in the top 20% of Realtors within the Keller Williams South Bay Office. My Keller Williams Office asked me to join The Agent Leadership Council. The ALC allows me to stand out and help build and grow leaders within our office and community. I was also asked to be the Program Director for The Women's Council of Realtors South Bay Network. I am grateful that I have been given a tremendous amount of trust from my family, friends, clients and company. With all the trust I have become the agent that I am. It allows me to build strong and lasting connections with the community and all my clients. I strive to be the best mom, wife, Real Estate professional, leader and role model. I am always learning and ready to go above for my family, friends, co-workers and even more so for my clients. My clients almost always end up becoming amazing close friends and I wouldn’t have it any other way. I love my job and I love nothing more than matching clients with their dream home and completing their dream of becoming a home owner.