Assessed Value – Essentials Things & Finding Your Home Value

Assessed Value – Essentials Things & Finding Your Home Value

Whether you’re searching for your next home to purchase or considering selling your current property, your home’s assessed value is important to know through every stage of homeownership.

When tax assessed value matters & how to calculate it

The assessed value of your home is the estimate of your home’s worth in the current market, and this amount is what’s used to determine your yearly property taxes.

As a homeowner, knowing your assessed property value can help you budget your money more effectively for property taxes and understand if you have enough equity built up to borrow a home loan.

If you purchased your home years prior and are considering selling the property, the current value has most likely greatly increased, so knowing the assessed price of your home can help when deciding how much to list your home for.

Assessments versus appraisals

So, what’s the difference between assessment and an appraisal? The appraised value of your home is how much the property is worth on the market whereas the assessment is the number used by your local government to determine property taxes.

During an appraisal, usually a state licensed appraiser is sent out by a mortgage lender to examine the property. During the examination they observe the foundation, structure, square footage, HVAC system and more.

For assessments, your local government hires professional assessors to use data about the home, including previous years appraisals, to determine the worth of the property and how much taxes need to be paid on the property.

The assessed value of your home is constantly changing due to market conditions. Staying up to date with this information can prepare you, regardless of what step you’re on in the journey of homeownership.

Knowing the assessed value of a particular property can be a huge help in buying, selling or refinancing. However, with multiple valuation methods and terms available, it can be difficult to distinguish one from the other. Luckily, there are some simple ways to find the assessed value of your home. Here are the basics:

What is assessed value?

The assessed value of a property refers to the estimated amount your home would sell for. This value is key in determining how much you pay in property taxes every year. A lower assessed value will generally equal lower tax rates and vice versa.

How do you calculate assessed value?

To find the assessed value of your home, you would need to know a few other variables first. One is a percentage known as an “assessment rate” determined by the local county or other municipality. You also need the market value of your home, which can be determined by a real estate agent, and the appraised value, which you can get from a professional appraisal.

To calculate the assessed value, you multiply the market value by the assessment rate. For example:

Assessed value = (Market value x Assessment rate) / 100

If you’re planning to sell or buy a home, it’s important to familiarize yourself with these terms. Even if you’re not planning to buy or sell, knowing your home’s value can help you make more informed financial decisions.

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