Assessed Value: Refers to “the amount that a local or state government has designated for individual properties” (www.accountingcoach.com), and is often different from market value and appraisal value. Property tax, when it’s levied, is based on the assessed value of a home. About 60% of U.S. properties are assessed higher than their current value, and this assessment doesn’t reflect what the property will sell for. Example: “Assume that a company’s warehouse is located in a city. The city tax assessor is responsible for determining the assessed value for every parcel of land and every building within the city. The city government then establishes a real estate tax rate to be applied to the assessed values.” (www.accountingcoach.com)
WHAT IS YOUR HOME WORTH?
Before pricing your home with an agent, you should know the difference between value, worth, and price. The descriptions below will help. Online Home Valuation: You can get a rough estimate of your home’s current market value online. While some people on the road to moving are tech-savvy, if you’re not familiar with online real estate research, your agent can help you, as can friends or family members who are somewhat tech-savvy. Many free online tools are available to help provide this estimation. However, they aren’t always accurate because they’re based on current public data, which change regularly. They also don’t consider all relevant factors. Professional Appraisal: Real estate appraisal involves the development of an opinion of value for a property. In other words, it’s the “market value,” or what a willing reasonable buyer would pay for the property to a willing reasonable seller.
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