Assessed Value: Understanding the Basics
Gain a better understanding of assessed value and its impact on calculating property taxes with this article. Learn how and when it is calculated as well as important definitions and tips.
Understanding Assessed Value Basics
When it comes to home appraisals and property taxes, understanding assessed value is extremely important. Assessed value is a term that is widely used in real estate and can have many definitions. Understanding what it means today will help you navigate home buying and possibly even save you money. Read on to learn some key terms and the basics of understanding assessed value.
What is Assessed Value?
Assessed value is an estimate of the worth of a real estate property that has been calculated by local officials. It is often used to determine how much a homeowner owes in property taxes. It is usually calculated every one or two years in most states.
Types of Assessed Value
There are two types of assessed value: fair market value and taxable value. Fair market value is the amount that a property is worth at any given time. This is the value that is used when listing the price of a home for sale. Taxable value is the value established by local property tax assessors, which is used to determine how much the homeowner owes in taxes. Depending on the state, the taxable value might be the same as the fair market value or it might be lower.
Factors Influencing Assessed Value
There are several factors that can influence the assessed value of a property, the most important of which is the condition of the house and the area that it is located in. Market demand, comparison to similar properties, recent renovations, and the size of the property can all affect the assessed value. It is important to keep these factors in mind when buying a property, as they can affect the amount of money a homeowner has to pay in property taxes.
Conclusion
Understanding assessed value is an important part of home buying. Assessed value is determined by local officials and helps determine how much a homeowner pays in property taxes. Understanding fair market value, taxable value, and the various factors that go into assessing a property will help you make the most informed decision when it comes to buying a home.