In today’s thriving Texas Real Estate market there is still one topic that comes up this time of year that has most people wondering. What is the difference in the Market Value and Assessed Value of my home? While these two topics may seem the same, they are not. Unlike other markets (cars, for example), home values are not set by one standard. So how does the average homeowner know the difference?
We sat down with Carter Shillig, Real Estate Broker and former Chair to the Collin County Appraisal Review Board and Neil Shillig, Realtor with Shillig Real Estate Group at Keller Williams Realty, Heritage in San Antonio, Texas.
Neil Shillig was able to shed some light on the topic of Market Value. Mr. Shillig stated that “Market Value is the price that a buyer is willing to pay for a home, and that the seller would be willing to accept.” There are numerous factors that go into arriving at that price point. To name a few: condition of the home, neighborhood comps, inventory, and location. Both listing and buyers agents will come up with a value for each of their clients based on the information they have for that particular home.
In discussing Assessed Value with Carter Shillig, he stated that “this is the value that the county comes up with in order to tax the home”. To come up with this value, the county has an appraiser/assessor look at other homes with similar size, bedrooms, shape, design, and what other homes have sold for to reach this value. They take all of that information into consideration and come up with a value for your home. Once they have come up with a value for your home, the county comes up with an assessment rate in which your home gets multiplied by and that determines your tax assessment. The higher your home’s assessed value, the more taxes you pay.
When it really comes down to it, price is an opinion of data determined by an individual and can vary from person to person. The most important number (Market Value) is the number that the buyer and seller agree on during the sale of your home. The other number (Assessed Value) should and can be protested by the homeowner or someone they can hire or choose to go protest their assessed value for them.
Shillig Real Estate can and does help each one of their clients, family members and friends protest their assessed values each year by providing statistical information. To find out more information about how Shillig Real Estate can help you, contact them at firstname.lastname@example.org or call Neil Shillig directly at 210-248-8428.