During many listing presentations, I’ve had many sellers debate the value of their home based on the tax assessed value. The sad truth is that the tax assessed value is not a direct reflection of the current market value. The issue is that the local tax assessor’s office will assess properties every 1-3 years. Needless to say the tax assessed value doesn’t take into account the constant fluctuation in home values due to external variables like the economy, seasonal adjustments, and/or supply/demand pressures.
What is Tax Assessed Value?
The tax assessed value is the property’s value for tax purposes. Counties and the District collect real estate taxes from homeowners that are calculated based on the tax values of their properties. They are not determined by the economic forces of supply and demand but rather by counties; fiscal requirements. The District estimates the money that they must collect from homeowners to pay for city expenditures.
What is Fair Market Value?
A property’s fair market value is the amount of money a buyer is willing to pay for a home. The Fair Market Value is based on comparable home sales within a 1-mile radius during a 3-month period.
Hopefully you found this post useful! If you would like more information about Washington DC real estate, please contact Jason Trotman at 301-452-4767. If you’re new to DC, I’d especially like to extend a warm welcome. I value the opportunity to help my clients find the home that meets their needs and provide them with professional, reliable service.