There are many different ways to value a property – they can be purely numerical and easily quantifiable, emotional, or analytical. But two of the most important ways to view property value – tax value and market value – can be tricky to differentiate. Here’s how to understand the similarities and differences between tax value and market value, and why it’s important to be able to distinguish between them when determining Asheville real estate value!
First of all, does tax value equal market value? In short, no – there may be instances in which the tax value and market value are equal, but this is purely coincidental. One does not dictate the other.
Market value is often more variable than tax value. Ultimately, the market value of your home is what somebody is willing to pay for it and what you’re willing to sell it for. There can be any number of factors that may affect this number – your emotional attachment to the home, the buyer’s interest in the location, how quickly you or the buyer need to close the deal, and so forth. For Asheville real estate, which is affected by a wide variety of factors, this number is not easy to calculate, nor is it determined by hard and fast rules.
Tax value, on the other hand, is a bit more set in stone. Tax value is the value of your house that it is being taxed on – it takes into account the land value and the improved value of the home, which accounts for what has been done to the home to make it worth more than just its land value. Land value is often taxed at a lower rate than market value, but improved value could be significantly higher or lower than market value, depending upon the neighborhood and the specific improvements. An unimproved house in a nice area with nicer homes might be taxed at a higher rate and therefore have a higher tax value, but not necessarily have a high market value.
In short, tax value does not necessarily equal or indicate market value, and it’s important to understand both concepts in order to get a good idea of what a property is worth and what it is likely to sell for at any given time in Asheville.
To learn more about tax value and market value, visit AshevilleCashBuyers.com or give us a call today at 828-222-6443!