Definition of "Reassessment"

Nikki Serrano real estate agent

Written by

Nikki Serranoelite badge icon

Sellstate Real Estate

A reassessment or a reappraising is a decision or strategy made by the owner or the state or local authorities. The reassessment definition is a revision of an earlier assessment. Property taxes are based on property values and tax rates. An assessor assesses the property value, and then a reassessment can be necessary if the property changes owners or changes are made to the property. The revaluation may have many reasons, such as recent comparable sales of a property, economic conditions, and new tax laws. The valuation is most often used for contract negotiations or tax matters. An example is revising the value of real estate based on new information.

Assessments and reassessments are done by local authorities either every year or every five years. As mentioned above, change in the property or change of ownership demands a new reassessment.

Why are reassessments done?

The main reason for reassessments is to determine the property’s tax. State or local authorities do this process through an assessor who may or may not visit the property. The assessor’s job is to evaluate the property’s value by considering the variables that affect it. Some of these variables are the lot and building size, number of stories, bedrooms, bathrooms, improvements from the previous assessment, comparables, curb appeal, etc.

Because the real estate market is alive and influenced by outside factors, the properties’ values can fluctuate with the local economy. Appreciation and depreciation can happen, but they don’t always affect properties in unison. An upcoming housing market crash will, however, affect house values. This can be affected by how often reassessments are done in one district or another, affecting property taxes’ correctness.

States like Arizona, Georgia, and Michigan require annual reassessments, while New Hampshire, New York, and Hawaii do not require periodic assessments and leave them to local districts.


Reassessments and assessments can also be used by property owners to determine their assessment ratio. This can be done to determine their tax liability and understand the state of the market.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Loan having the last payment either (1) more than twice the amount of any other payment, or (2) a payment arising from the lenders call provision. The term loan (or straight loan) is a form ...

Category of property zoning that designates property to be used for industrial purposes. Industrial zoning allows manufacturing, research and development purposes, factory office and ...

Same as term landlocked: Parcel of land that is totally surrounded by other land parcels not providing access to a highway. ...

Space constructed between elements of a structure permitting lateral movement due to expansion occurring from temperature increases. ...

Builder who builds homes or other buildings to the specification of his customer. Normally the homes and other structures are presold. The customer builder may also build a few on ...

The period when a financial debt, such as a mortgage, must paid. ...

Evaluation of the dimensions of a building to determine its ability to meet the needs of the occupants. ...

term used in law stating 'allow the principal to respond'. An owner of property is legally liable for the improper actions of an agent representing him if it is within the scope of the ...

Database program that has real estate listings including property photographs. Real estate computer software allows real estate agents and brokers to search for a particular listing by ...

Popular Real Estate Questions