When listing their home for sale, sellers often question why their Realtor’s suggested list price or market evaluation is different than their city property assessment (particularly when it’s lower than the tax assessment). It’s important to know that your city property assessment and the market evaluation done by your Realtor may be very different for several reasons:
- Your current City Property Assessment Notice reflects the estimated market value of your property on July 1, 2017 and includes renovations until December 31, 2017.
- City estimates are done using mass appraisal models, grouping similar homes together. They do not look at individual homes.
- The city estimates your home’s value using the information they have from city permits and registered plans only. They do not include upgrades, etc.
- The city doesn’t take into consideration any market influences or adjustments that occurred since July 1 of the previous year.
- Homeowners don’t challenge their city assessment when the evaluation is low because they don’t want to pay more taxes.
The city property assessment is a value placed on your property for taxation purposes only. By contrast, the market evaluation provided by your Realtor is meant to help you price your home to sell and takes into consideration the current real estate market conditions, the state of your home and its upgrades, and what comparative homes in your area are selling for. This helps you make an informed decision on how much to list your home for – and it may be very different than your City Property Assessment.