Assessed Value
Definition and meaning of Assessed Value in real estate.
Assessed value is the dollar valuation placed on a property by a public tax assessor to calculate local property taxes. It represents the value of both the land and any structures on it, which is multiplied by the local tax rate to determine the annual tax bill.
In more detail
Government agencies reassess properties periodically, sometimes annually or every few years, depending on local regulations. The assessed value is often a percentage of the property's fair market value, rather than the full market value itself. For this reason, a home's assessed value is typically lower than its actual selling price or appraised value.
Property owners who believe their assessed value is too high can file an appeal with their local tax board to lower their property taxes.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Determined By | A government tax assessor |
| Primary Purpose | Calculating local property taxes |
| Relation to Market Value | Often represents a fixed percentage of market value |
A homeowner receives a property tax statement showing their house has an assessed value, which is multiplied by the local tax rate to calculate their yearly tax payment to the county.
Frequently asked questions
Can I sell my house for its assessed value?
You can, but the assessed value is for tax purposes and is typically lower than the fair market value, so selling at this price might mean losing money.
How can I lower my home's assessed value?
You can appeal the assessment by presenting evidence, such as recent sales of similar nearby homes or proof of damage, to show that the assessor valued your property too highly.
Does a home renovation affect my assessed value?
Yes, major structural improvements or additions typically increase a home's value, which can lead to a higher assessed value and increased property taxes.
Related terms
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