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.
To calculate your home's assessed value, the market value of the home is multiplied by the decimal form of the assessment rate. The formula for this is:
Assessed Value = Market Value x (Assessment Rate / 100)
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.
About the Author
Claire Rainville
I have been conducting business in this local area for 20 years as a full-time real estate broker. My priority as a real estate broker is to ensure my client’s satisfaction through providing them top-class service specifically catered to their individual needs. As your agent, I will effectively communicate with other parties involved in your transaction to ensure the purchase or sale of your home/land/investment property goes smoothly. I use my high-touch philosophy and high-tech resources to attractively market my listings as a seller’s agent, and will proactively use my connections as an experienced real estate broker to find my clients’ their dream home. I am also available via phone, email or text messaging to accommodate my clients’ various schedules and/or preferred mode of communication.
