Reassessment
Definition of "Reassessment"
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.
Popular Real Estate Terms
When two or more individuals simultaneously have rights in a property unit (e.g., apartment),. The individuals sharing the property have legal privileges and responsibilities to each other. ...
A convex vaulted curvature often spherical in shape usually built atop of a building. Domes can be constructed of any material including masonry, wood, glass or steel. They can be ...
Dividing a lot into two or more parcels. Normally a variance would have to be obtained to permit a lot split. The lot cannot be split unless they meet minimum area zoning requirements ...
Used to compute the tax on a specified taxable income. The marginal tax rate usually increases as the taxable income rises. ...
The method for splitting a commission between a registered real estate sales person and the sponsoring real estate broker, and between the listing broker and the selling broker, or any ...
Last installment payment, substantially greater than the previous installment payments. The unpaid balance of a long-term loan is paid off in a lump sum at the end of the loan term. ...
While trying to determine your net income, you might come across the term revenue, sales, or gross income. So what does revenue mean? Through revenue, we understand the income generated ...
Notice of a pending suit; a public notice given to prospective purchasers and any one else considering an interest in property that the title is being legally challenged, and the outcome is ...
A real estate broker who lists and sells houses or condominiums, as distinguished from a commercial broker who handles business property. ...
Have a question or comment?
We're here to help.