Learn the Difference Between Assessed and Market Values of Your San Diego Home

When it comes to comprehending the true value of your San Diego residence, two significant and distinct terms frequently enter the spotlight: assessed value and market value. While these terms might appear analogous at first glance, they encapsulate disparate dimensions of your property's financial and real estate status. Understanding this disparity is crucial for homeowners and real estate enthusiasts alike.

The assessed value of your property is essentially a numerical evaluation that local government authorities utilize to determine property taxes. This value is calculated based on an array of factors, including the property's size, condition, and features. It serves as the foundation for property tax assessment, with tax rates applied to this value to determine your annual property tax liability.

On the other hand, market value signifies the amount your property could fetch on the open real estate market. It is not confined to the tax realm and represents the price a willing buyer and seller agree upon in a free and open transaction. Market value is influenced by various factors, such as the current state of the real estate market, demand, location, and the unique characteristics of your home.

Assessed Value: The Objective Evaluation

The assessed value is a term used by local government authorities, such as the San Diego County Assessor's Office, to determine the value of your property for taxation purposes.

This value is primarily used to calculate property taxes. Assessments are typically conducted periodically, and the resulting value is based on factors such as the size and condition of your home, as well as recent sales data of similar properties in your San Diego neighborhood.

In San Diego, the assessed value is determined by the County Assessor's Office, led by Melina Rissone. The office evaluates all properties in the county, including those in neighborhoods such as Downtown, La Mesa, Point Loma, North Park, South Park, Bankers Hill, Grant Hill, Gaslamp, Barrio Logan, Hillcrest, Golden Hills, Spring Valley, and Chula Vista. They consider various factors specific to each location to arrive at a fair assessed value.

It's important to note that the assessed value is not always a reflection of your home's current market value. Assessments may not account for recent improvements or changes in the real estate market. Therefore, there can be a disparity between the assessed value and what you could sell your home for in the current market.


Market Value: The True Worth

On the other hand, market value is an estimate of what your San Diego home would sell for on the open market. Market value takes into account factors such as location, size, condition, amenities, and recent comparable sales in your San Diego neighborhood. Market values fluctuate based on supply and demand dynamics, economic conditions, and other market variables.

To determine the market value of your San Diego home, real estate professionals or licensed appraisers conduct a comprehensive analysis, considering various factors that influence the current real estate market. They compare your property to recently sold homes in the same area to assess its fair market value.

Understanding the market value of your San Diego home is crucial when considering selling, refinancing, or assessing your overall net worth.

Why the Difference Matters

The difference between assessed and market values is important for homeowners in San Diego because it impacts their property taxes, insurance, financial planning, and investment decisions. Understanding both values helps homeowners make informed choices regarding their property.

If you find that your assessed value is significantly higher than the market value of your San Diego home, you may have grounds to appeal your property tax assessment. This can potentially lower your property taxes and save you money in the long run.

Additionally, knowing the market value of your home allows you to make informed decisions when it comes to refinancing or obtaining a home equity loan. Lenders often consider the market value as an important factor when determining loan terms and eligibility.

In San Diego, knowing the difference between the assessed and market values of your home is essential for homeowners who want to make informed financial decisions. While the assessed value represents the objective evaluation by local government authorities for taxation purposes, the market value reflects what your home would sell for on the open market.

By understanding both values, homeowners can take advantage of potential savings and make well-informed decisions about their properties in San Diego's vibrant real estate market.

How Can I Help You?

Melina Rissone

Having sold properties for more than 17 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers.

  • Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
  • Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
  • RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
  • SRES Certification through NAR is a Seniors Real Estate Specialist certification.
  • Melina is bilingual in English and German.
  • Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
  • Coldwell Banker Presidents Elite Award.