What is your home really worth?

If you own property, by now you should have received your property tax assessment from the county in which your property is located.  The question that naturally arises for most people after reading this statement is “does this mean that my home is worth this amount?”

The answer to that question is “no, not necessarily” due to the fact that assessed value and market value are two entirely different propositions.

What exactly is the difference between assessed value and market value?

The big differences have to do with the purpose of the value and the time frame during which the property is evaluated.

The county in which a property is located must determine the value of that property in order to assess and collect taxes (purpose).  County appraisers compare the property in question to similar properties which have sold in the previous 12 to 24 months (time frame) in order to determine the assessed value.  This is entirely different from market value, which is determined by the price a buyer is willing to pay for a property (purpose) within approximately the past 6 months (time frame).

So when you received your property tax assessment in the mail and the value was lower than what you thought the property should be worth, or if you were pleasantly surprised by the increased value you saw, please be aware that that figure has absolutely no bearing on what your property is worth in the current market. However, if your assessment increased and you believe the assessed value is incorrect, you may want to challenge the assessment with county, and there should be instructions on your assessment about how to correctly complete that process.

If you have any questions about property tax assessments or the market in general, or if you know of someone looking to get into the market, feel free to pass along my name.  I’m happy to help if I can!

Renee Cohen is a Colorado Realtor with a passion for helping her clients find their dream homes in the challenging Denver market. She loves educating her clients about the market, advocating on their behalf, and helping them make informed decisions. Reputable. Reliable. Remarkable. Real Estate. Contact Renee to assist you with your real estate needs!