Tucson Home Values

There Are 3 Home Values You Need To Know About

You Need To Know What These Home Values Mean To You

Home ValuesIn real estate, home values generally mean the amount homes sell for. But every home actually has three home values. The difference between each of these home value is important to every home buyer and seller.

The three home values are fair market value, appraised value and assessed value. The first two home values – fair market value and appraised value – should be almost the same.

Assessed value is an estimated market value determined by a property tax assessor. The assessed value multiplied by a millage rate determines the property taxes of a home.

Lets delve deeper into each of these home value numbers.

Fair Market Value

Fair market value (FMV) is an estimate of the market value of a home or other property. It is the answer to the question, “What is the value of my home?”

FMV is the home value a willing buyer will pay to a willing seller under the existing home market conditions.

When a seller lists their home for sale, their Realtor will do a comparative market analysis or CMA. A CMA reviews recent home sales prices of recent sales in the local market.

The CMA is an estimate of the Fair Market Value of a home in the “local” area the seller’s home is in. The Realtor and seller will adjust the FMV determined by the CMA to set the listing price of the home.

Appraised Value

An appraisal is one of the last pieces in obtaining a home mortgage. But a big one!

The appraisal establishes the “appraised value” of the home to be purchased. Lenders compare the appraised value to  the selling price of the home. The appraised value must be equal to or greater than the selling price or the lender won’t lend. NO mortgage, NO home.

Many factors come into play when a lender makes their commitment to finance a home loan. Lenders will review the borrower’s financial status. A lender’s review will include information on income, outstanding debts, investment and savings.

Lenders will also check the borrower’s credit score. Good credit is vital to securing a home loan.  These factors, and the all important debt to income ratio, must meet the lenders tests.

To provide creditability, only state licensed appraisers can prepare the appraisal. Appraisers compare the home to other “comparable” homes sold in the local area. The appraiser’s prepares a written report of their finding. The report is then delivered to the lender as support for the mortgage.

Assessed Value

In Arizona, property taxes on a home are the responsibility of local county tax assessor. In Tucson, that is the Pima County Tax Assessor’s Office. The local tax assessor sets home values for property taxes.

In Pima County, the Tax Assessor doesn’t create property’s values. Consumers do. Consumers determine home values based on what they buy a Tucson home.

The Pima County Tax Assessor analyzes home sales transactions to determine the appraised value. The Assessor determines the cash value of all property as of January 1 of the following year.

The process and calculations used by Assessor are dictated by the department of revenue.

The State of Arizona uses two types of property values for County property tax purposes.

County Tax Assessors must calculate both.

1) Full cash value is the home value placed on the exact property by the Assessor.

2) Limited value is a statutory formula for a specific tax year.

The limited value may increase even though the full cash value decreases. The limited value rises each year until it equals the full cash value.


Ok, there you have it. More information on home values then you ever expected. But now, when you are ask the question, “What’s my home worth?”, you will know what home value you want.

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