House Appraised Value vs House Assessed Value
House Appraised Value vs House Assessed Value
The Mary Ellen Vanaken Team of Keller Williams Realty - http://www.mevhomes.com
Confused about house appraised value vs house assessed value? Many people confuse assessments and appraisals.
An appraisal is a report created by an appraiser
to determine the house appraised value. The appraiser
uses recently sold prices of
similar properties in the area making adjustments for differences
between the
subject property and those being compared. The appraiser usually
combines the
"Market Approach" with a second method called the "Cost Approach"
(determining the cost to rebuild) or the "Income Approach" (used on
properties that produce income) to determine the homes value. Appraisals
are done when a property is to be financed or refinanced.
An assessment is the house assessed value placed on a property by the town assessor's office for the purpose of determining the property tax due. An entire town will be assessed during a 12 month period with values determined by a group of qualified assessors after viewing properties and interviewing owners. The combined house assessed value of all the town properties is used to calculate what the tax rate will be. Each year the town may re-evaluate the tax rate to obtain the monies needed to run the town based on that combined assessed value. When house assessed values become so outdated as to cause inequities between properties the town will then reassess.
Keep in mind that the house appraised value and house assessed value will usually not be exactly the same on a property.
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The Mary Ellen Vanaken Team of Keller Williams Realty
North Atlanta
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