As a homeowner, you likely recently received and /or paid for your property taxes. In doing so, you may have noticed your property’s assessed value in your statement. Although many homeowner’s may think that a property’s assessed value is the same as its appraised value, this is not the case. We discuss each below as it is important for homeowners to know the differences.
What is the assessed value?
Put simply, the assessed value provides a yearly estimation of the value of your home for tax purposes and this is done by your local government tax assessor. In doing this, your local government will typically use professional assessors to check the property data and possibly visit the home to better determine the assessed value. Typically, an assessor will look at historical sales data, inspection reports, comparative market analyses, home improvements, and even recent appraisals to determine a fair assessment of value. Of course, the process for the determination of assessed value as well as the cadence of this process may vary from state. Ultimately, these assessments should not be relied upon as your home’s actual value.
What is the appraised value?
An appraised value is an estimation of a property’s value as determined by a professional real estate appraiser. Ultimately, this estimation is based on the condition of the property combined with recent comparable sales given the current market conditions. Typically, a real estate appraiser will take into account various features of the home, the square footage, the number of rooms and more in determining a valuation. Ultimately, an appraisal is an opinion of the fair market value of the home. Therefore, these valuations may differ from one appraiser to another.
Summary
In closing, a tax-assessed value indicates the taxes that will be due on the property for a given year. On the other hand, an appraisal is a value determined by a certified property appraiser and is typically utilized when buying a home. When listing your home for sale, your real estate agent should be able to provide you with a comparable market analysis to best determine an asking price. In addition, some sellers may also opt to have an appraisal performed on the property to determine its value. Nonetheless, having knowledge of property valuations whether your are a home buyer or seller is critical to your success in real estate.
Are you in the South Florida area? Whether your are buying or selling, our team of real estate professionals at Live South Florida Realty, Inc. can help you. In addition, be sure to download the free Florida Home Search app for your mobile device. The feedback from our clients using this app has been overwhelmingly positive & we are certain you will appreciate it as well.
