Assessed Value
Definition of "Assessed value"
The term assessed value is used to define the dollar value of a property for the applicable taxes. The evaluator, a tax assessor, determines the property’s assessed value for tax purposes through real estate valuation. Once the evaluation is done, the assessed value is used to establish the property’s tax and is taxed accordingly.
The assessed value can be differentiated from the property’s appraised value, tending to be lower than this. The difference between the two can be anywhere from 10% to 100%.
What is the Assessed Value?
Calculating the taxes that apply to any particular property, also known as the ad valorem tax, the assessor must determine the assessed value. As the ad valorem tax is applied annually, the assessed value is calculated every year, unlike the appraised value that can also be appraised every five years.
The local government designates the tax assessor by tax districts as each region calculates the assessed value differently. The calculation’s basic standards are more or less the same, but because different districts’ market value varies, tax assessors are designated by regions. To determine an accurate assessed value of a property, the tax assessor takes sales of comparable homes and home inspections into account. Other factors on which the valuation is based are the property’s quality, the value of the property, home features, location, square footage, and market conditions.
How is the Assessed Value used for Property Taxes?
As mentioned above, assessors calculate the assessed value annually as this real estate valuation is the basis for determining the annual property tax that the owner has to pay. Based on the factors specified before, the assessor determines the assessed value as a percentage of the property’s fair market value. All these calculations are computerized, and information about real estate obtained from the neighborhood and surrounding areas plays a crucial role in determining an accurate valuation.
For owners that also inhabit the property, the assessed value can decrease over time (also known as a homestead exemption). This decline is unrelated to the property’s fair market value and does not affect it. However, it does affect the property tax by diminishing it.
Popular Real Estate Terms
Same as term nonconforming use: Property use which is in violation of the current zoning ordinance, but had been in use prior to the zoning ordinance's enactment. A nonconforming use is ...
3D Printed Homes are basically homes that were printed via 3D Printers. Though semantically the phrase is pretty obvious and straightforward, there’s a lot we need to contextualize ...
Real estate market where supply significantly exceeds demand enabling potential buyers to obtain lower prices and good deals. ...
The Exclusive Right to Sell Listing is a type of Listing where the Listing Broker/Agent wins his/her commission even if he/she wasn’t directly responsible for the sale.Let’s ...
Transactions taking place between individuals who are alive rather than when one of the parties is either dead (e.g., estate) or is contemplating death. For example, a deed may transfer ...
Flood insurance is a type of home insurance created to protect a homeowner’s property against damages caused by floods. Flood insurance is typically not included in the regular ...
Those factors causing the movement of people, industry, and business from the central city to the outside central city areas, suburbs, and/or small cities. Elements of the dispersing force ...
Indicators reflecting future changes in economic conditions; referred to as the Composite Index of 11 Leading Indicators. This index indicates the direction of the economy in the next six ...
An offset statement defines a specific property owner’s underwritten certificate against their property. The reason behind this action is to set forth the current condition of liens ...
Have a question or comment?
We're here to help.