What Is Your Property Really Worth?

By Rich Barnhart

I

t is that time of year again when the
property appraiser sends us our TRIM
notices with our proposed property

taxes. Pay close attention to your Just
Value as determined by the Broward
County Property Appraiser. By the way,
if you disagree with the Just Value in
your TRIM notice you can challenge the
proposed taxes. We have successfully

helped our clients in this process by providing comparable
sales and supporting data from our MLS system.

Just Value vs. Assessed Value

To make things as confusing as possible, the property
appraiser uses the term “Just Value” synonymously with
“Market Value.” Just Value is supposedly what a buyer
would have reasonably paid for your property as of
January 1st of the current tax year. They start by
determining the value of your land based on a price per
square foot of comparable lots. Then they add the value of
your building which is based on an adjusted square foot
valuation model. By the way, adjusted square feet is not
the same as actual living area and is calculated from air-
conditioned and non-air-conditioned space. Also, Just
Value does not consider the condition of the building or
how many beds and baths you have.

Your Assessed / SOH (Save Our Homes) Value is used to
compute your property tax due. If you homestead your
property, the Assessed Value should be less than your
Just Value. If you have homesteaded your property for
a long period of time, the difference could be
significant since the Save Our Homes Amendment
caps Assessed Value increases at 3% per year. 

Automated Valuation 
Models (AVM)

An automated valuation model is basically a
computer program that calculates the value of your
home based on proprietary algorithms including location,
square footage, property features, number of beds and
baths, etc. The most famous AVM is Zillow’s Zestimate

®

.

For obvious reasons these AVMs are certainly not perfect.
A funny example of how inaccurate an AVM can be
involves Zillow CEO Spencer Rascoff. According to Inman
News Rascoff recently sold his Seattle home for $1.05
million, 40% less than the Zestimate

®

of $1.75 million.

True Market Value

The only way to truly determine the ultimate sales price for
your exact property is to list it for sale on the open market
and see what reasonable buyers are willing to pay. This
assumes, of course, that both buyer and seller are
motivated and informed, and that the property is
reasonably priced and exposed on the open marketplace
for a period of time consistent with comparable sales. The
best way to determine list price and market value for your
property is to ask your REALTOR

®

to provide you with a

comparative market analysis (CMA) that includes recent
sales and active listings. You can also consider Just Value
and an AVM before listing your property for sale, but a
CMA from a local real estate professional should be your
most accurate resource.  

I

Rich Barnhart, 
By the Sea Realty, Inc

954-351-7007 |www.bythesearealty.com

Real Estate

The Landings & Bay Colony

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