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.
About the Author
Julie Burgey Kehoe
Your Realtor for Life
My Goal as a Real Estate professional is to provide the highest level of service for my clients. I feel that it is important to provide an array of information and services regarding all of your Real Estate needs. Services include (but not limited to): Home Market Evaluation, Home Staging, Home Search and Home Research, Problem Solving, Home Sale & Purchase Negotiations, Home Inspection and Appraisal & Mortgage Pre-approval Coordination, Strategic Offer Writing. My focus is helping Sellers and Buyers through the entire transaction process, from start to finish.
