Municipal assessments are assigned for taxation purposes. While they are based on historical sales in your city, the primary variants used are lot size and building area. They are done every three years, and factors such as location, renovations, year of construction, and quality of materials are not consistently taken into account. So, this infrequent and superficial assessment of your home is, at best, an approximation of the value of any home in your neighbourhood that is of similar size to yours.
The best way to know how much your property can command on the open market is by requesting a Comparative Market Analysis (CMA) by a reputable real estate broker. Top brokers draw heavily on their in-depth knowledge of the local market to determine your home’s position in that market. This involves researching similar properties that have sold recently, comparing them to your property in terms of updates and renovations, and considering current market conditions.
The accuracy of the market value assessment derived from the CMA is directly proportional to the depth of the comparison, as well as the particular broker’s level of understanding of current market conditions. Be wary of a broker who attempts to price your property sight-unseen, and/or without having taken the time to prepare a comprehensive CMA.