Is there a reason my home’s assessed value differs compared?

Your home's assessed value and its market value are two different numbers calculated for two different purposes, and they almost never match. Assessed value is determined by your county assessor for property tax purposes. It's based on a mass appraisal of properties in your area using formulas, not an individual inspection of your home. Many counties assess at a percentage of market value, and assessments are often updated on a cycle of one to three years. This means your assessed value can lag behind or ahead of what your home would actually sell for. Market value is what a willing buyer would pay a willing seller in the current market. It's influenced by recent comparable sales, the condition of your home, buyer demand, interest rates, and dozens of other factors that change in real time. Market value is what an appraiser determines when a lender orders an appraisal for a purchase or refinance. A lower assessed value than market value is common and actually works in your favor because it means lower property taxes. A higher assessed value than market value means you might be overpaying on taxes and could have grounds to appeal your assessment. Don't use your assessed value to price your home for sale. Use a CMA or appraisal based on actual recent sales in your area.

Assessed value is used for property taxes and may lag behind current prices. It may also include exemptions or mass-valuation methods. Market value is what a buyer will pay today and changes with supply, demand, condition, upgrades, and interest rates. It is completely normal for the two values to be different.

Your assessed value is not your market value. Your assessed value is typically a fraction of your market value used for calculating your property tax amount.

The assessed value of a home is an estimate that the city/town uses to provide a value to tax the property and other similar in the area. Comparable value uses data based on recent sales in the area within a certain distance, timeframe, and similar features to your property to determine the value your home could sell for on today’s market. Briahna Savage Licensed Realtor NY & PA [email protected]