Start with three numbers, then trust only one of them
Most Ann Arbor homeowners who ask what their house is worth already have three numbers in front of them: an online estimate, the assessed value on the tax bill, and a figure a neighbor got last spring. Each one tells you something. Only one of them reflects what a buyer is likely to pay this season, and that is the range built from recent comparable sales.
This guide explains what each number means, why they disagree, and how to turn them into a price range you can plan around.
What online estimates can and cannot see
Automated estimates are models. They read public records such as square footage, bedroom count, lot size, and year built, then compare those details with recorded sales nearby. That makes them a fair starting point for a typical house on a typical street.
They are blind to most of what separates one Ann Arbor home from the next. A model cannot tell a 1920s Old West Side house with a new kitchen and dry basement from the same footprint with original wiring and a wet one. It also misses finished lower levels that were never recorded, a garage on a street where parking is tight, or a busy-road location that buyers notice right away.
Treat the online number as a question to answer: is your house better or worse than the average home the model assumes?
The tax bill is not the price
The City of Ann Arbor Assessor sets an assessed value, also called state equalized value or SEV, that is meant to be about half of a property's true cash value. The Assessor's own guidance for appeals compares similar sales against twice the assessed value. So doubling your SEV gives a rough idea of what the city thinks the house was worth.
That figure trails the market. Assessments are built from earlier sales, so in a rising or falling market the doubled SEV can be noticeably out of date.
Taxable value is a different number again. Under Proposal A, increases in taxable value are capped each year while you own the home, so an owner of fifteen years may have a taxable value far below today's market value. After a qualifying sale, taxable value uncaps for the buyer in the following calendar year. That matters to your buyer's budget, but it says very little about your price.
For more on how these values are set, see our property assessment guide and the property tax tool.
How comparable sales set the range
A comparative market analysis, or CMA, starts with homes that sold recently, close by, and with similar style, size, age, lot, and condition. In Ann Arbor, close by often means the same neighborhood and school assignment, because a mile can change the buyer pool.
Each comparable is then adjusted for real differences. A finished basement, an extra full bath, a two-car garage, or a renovated kitchen moves the number. So does a sale that closed before a seasonal shift in demand. The goal is a range, not a single magic figure.
Active and pending listings complete the picture. Sold homes show what buyers paid. The homes on the market now are the ones your buyer will tour the same weekend, and they set the competition. Listings that expired without selling often show where the ceiling was. Our guide to comps for your house walks through how to judge a comparable.
What moves an Ann Arbor price up or down
- Condition of the roof, furnace, water heater, windows, electrical, and foundation, and the age of each.
- Water history in the basement, sump pump condition, and any repairs with receipts.
- Updates with dates and permits, especially kitchens, baths, and mechanical systems.
- Parking, garage, and driveway, which carry more weight near downtown, Kerrytown, and campus.
- School assignment, since an Ann Arbor mailing address does not always mean Ann Arbor Public Schools. Check yours with the school district lookup.
- Lot, yard, and setting, including traffic, slope, mature trees, and nearby parks or trails.
- Timing. Spring usually brings the most buyers, while winter listings face fewer buyers and fewer competing homes.
Plan around what you clear, not just the sale price
The price is only half of the decision. What you take home depends on your mortgage payoff, commissions, title and closing costs, Michigan and Washtenaw County transfer taxes, repairs or credits negotiated after inspection, and any overlap if you are buying your next home at the same time.
Run your own scenarios with the home sale calculator, and read our guide to seller net proceeds. If you are selling and buying together, the buy and sell at the same time guide covers the timing options.
Get a valuation from our team
We would rather give you the source than the opinion. When Penn | Ewing prepares a valuation, we show you the sales and listings we used, the adjustments we made, and the range we would list in, so you can check our thinking.
To get started, send us the address, the updates you have made and roughly when, anything you know needs work, and your timing. You can request a home valuation or read more about selling a home in Ann Arbor. There is no cost and no obligation to list.