What Is Assessed Value?
Assessed value is the value of a property that is placed on a property for the sole purpose of determining its property tax. The assessed value is determined by an assessor. The property tax is a factor in finding out if the annual property tax has increased or declined. Due to fluctuation, market value, and assessed value are totally different. The assessed value is delayed by one year from the actual market value.
The assessed home value is done annually by an assessor’s staff. It will be based on the sales of properties from the previous year. The property’s assessed value determines the amount of money that the county is expected to collect for property tax. If the value of a property increases, the tax rate will increase as well. There is an instance when the value of a property declines.
In calculating the value of a property, the assessor will consider the external condition of the property. It will also take into consideration any improvements that are made. The assessor will neither inspect the interior of the house, nor will he check if it’s clean. Annual notices are sent out in case changes have been made in the assessed value of a property. The annual notice will also show if the tax rates have changed.
Every county has its own process of testing whether the assessed value of the property is true. If you want to know more about assessment procedures, read the notification provided by your county. You may also call the assessor’s office or visit their website.
All property owners have the right to make an appeal if they feel like a mistake in assessing their property has been made. If you feel that your property’s new assessed value is more than the fair market value, then you have the right to make an appeal each year when the notification has been distributed.
If you think that a mistake has been made in assessing your property value, it would be best if you contact your assessor right away. Review your information with the assessor to make sure that there is no error. Review the characteristics that your assessor mentioned about your property, make sure that the important features like property size, residence, views and others are correct and have been considered.
A fair market value is the probable price that a home will be sold in the market. This is determined by looking at similar properties that have been sold recently, and looking at similar prices of homes that are in the market. If the analysis is done properly, then it should include homes that were placed on the market, didn’t sell and eventually withdrawn.
Too high or too low market and assessed value is not always a good thing. The higher the market value is the higher the assessed value is going to be, which means that the property tax will increase as well. If the market value goes down, property tax will be lower as well. Everyone wants the value of their property to increase, but not the taxes.