If you are selling your home, you know that determining your home’s value is important. You need to know your real estate’s value in order to list it for a fair price that will appeal to buyers. You may hear the words “assessment” and “appraisal” used interchangeably, but there are very important differences between the two. We at Network Real Estate have taken the guesswork out of real estate jargon in order to help you sell your home.
Let’s start by defining the difference between assessments and appraisals. An assessment is the monetary value of your property as determined by the city’s assessor’s office so they can determine your annual property tax. Homes are assessed annually by the local government after viewing homes and talking with homeowners. An appraisal is the estimated amount an appraiser gives to your home. The assessed value and the appraised value should be similar, though they have different functions. Assessments are used almost exclusively to determine property tax amount, while appraisals are used when selling your home (though they can also be used to appeal property tax assessments if you feel your home’s value has been inaccurately assessed).
Additionally, a home inspection is different from a home appraisal. A home appraisal is about the perceived value of your house from a buyer’s perspective. An appraiser will look for visual issues that might discourage potential buyers, such as lighting, flooring, and countertops, to name a few. Appraisers also consider how much houses in your area have sold for recently, the quality of your neighborhood, and proximity and value of local schools. On the contrary, a home inspection is about your home's overall condition. Structural soundness, mechanical systems, and plumbing are considerations in an inspection, rather than aesthetics.
To get an instant estimate on your home’s value, use our What’s My Home Worth? Tool. This can help give you a ballpark estimate of what to expect during appraisals and assessments. Let us do the work for you!