When preparing to sell or refinance a home, it’s crucial for LGBTQ homeowners to fully understand the difference between assessed value and market value—two terms that may sound similar but can have very different implications for your financial future.
At GayRealEstate.com, we’re dedicated to empowering the LGBTQ community with real estate insights that support informed, confident decisions. Here’s what you need to know.
What Is Assessed Value?
The assessed value is the dollar amount assigned to your property by a local government tax assessor. This figure is primarily used to calculate your property taxes and may not reflect the current market conditions or actual selling price of your home.
Key features of assessed value:
- Determined annually or biannually by your local government
- Based on standardized formulas and historical data
- Often significantly lower than market value
- Not influenced by buyer demand or current home improvements
For LGBTQ homeowners in areas with protections and inclusive zoning, the assessed value may not factor in local demand from LGBTQ buyers who value community-friendly neighborhoods, schools, and safety—making it an incomplete picture for sale pricing.
What Is Market Value?
Market value is what a buyer is willing to pay for your home in the current real estate market. This value is dynamic and influenced by:
- Neighborhood desirability
- School ratings and amenities
- Recent comparable sales (comps)
- Home condition, upgrades, and curb appeal
- Broader economic conditions and mortgage rates
Unlike assessed value, the market value is fluid and reflective of the real-time housing environment. For LGBTQ homeowners selling in progressive, affirming areas, the market value may be higher due to demand for inclusive communities—something assessed valuations often overlook.
Why the Difference Matters When Selling or Refinancing
When selling your home:
- Pricing your home based on assessed value could leave money on the table.
- Overpricing based on expectations without professional insight into market value could result in your home sitting unsold.
When refinancing:
- Lenders will typically look at market value, based on a professional appraisal, to determine your home equity and loan eligibility—not the assessed value.
- Understanding your home’s equity position can help LGBTQ homeowners access cash for renovations, legal expenses, or to fund future housing in a more affirming location.
Tips for LGBTQ Homeowners
- Get a Comparative Market Analysis (CMA): Connect with an LGBTQ-friendly real estate professional through GayRealEstate.com to get an accurate CMA based on current comps and market trends.
- Review Property Tax Assessments: If you believe your assessed value is too high, you may be overpaying in property taxes. You have the right to appeal.
- Know Your Local Market: Inclusive neighborhoods often carry a “premium” in the market. Leverage that demand to your advantage when selling.
- Consult LGBTQ-Sensitive Professionals: Appraisers, lenders, and agents who understand your unique goals and challenges can help avoid undervaluing or mispricing your property.
Understanding the difference between assessed and market value is essential for any homeowner—but particularly for LGBTQ individuals and couples who may face unique financial planning considerations, such as navigating joint ownership in non-married partnerships, protecting inheritance rights, or ensuring fair access to capital for future moves.
At GayRealEstate.com, we specialize in connecting LGBTQ homebuyers and sellers with vetted, equality-minded agents who understand both the technical and personal aspects of your real estate journey. Whether you’re preparing to sell, refinance, or simply understand your home’s worth, knowledge is power—and community is key.
Visit GayRealEstate.com today to find a trusted LGBTQ real estate professional in your area.
This blog is provided by GayRealEstate.com, the nation’s leading resource for connecting LGBTQ clients with top-rated LGBTQ and allied real estate agents.
