Can anyone explain the difference between the assessed value, the just mkt value and the appraisal ? Why is?

Question

there a large difference between these amounts?

Answer 1

Assessed value is the county system by which your taxes are based on. They take into consideration the size of the house and materials used and age factor then determine a value by which you are charged a percentage rate on. They maybe higher than or lower than the market value. Typically they are 80% of the market value, but if you have a big jump in what you pay one year they may be trying to catch up to the market.

The just market value is what a typical buyer is willing and able to spend for house like yours in your market. Not really very accurate right now due to large swing in what a dollar will buy in different markets.

Often you can get a BPO( which is a term used in real estate ) that outlines generally sales prices of homes in your area. This can give you a false sense of what your home may be worth though as it does not take into any consideration about your home. If you have a 2 story home and all that has sold around you is one story homes you may ask too little for your house.

An appraisal is based upon a few more factors. It looks at what your house is ( size, style, materials used to finish home inside and out) it looks at your location and any trends in the area such as increasing or decreasing market values, and it looks at historical data too. What have homes like yours sold for in the past 12 months. They also look at a cost book that helps in getting figures for what it would take to rebuild a house like yours.

An appraisal can be higher than, lower than or equal to a price quoted whether it is for sale or refinance. The reason why sales people and mortgage people want it higher is because they get paid on a percentage. The higher the value the more money they make. A true appraisal is your best defense for not paying more than you should.

I always recommend a home inspection also as an appraiser's liability is not whether the septic system works or that the breaker box is set up right but that it is there.

Answer 2

Assessed Value - Is the value associated with your property taxes. This amount is determined by the assessor's office. It can vary state to state since states like TX have higher property taxes than states like Colorado. In Colorado your Assessed Value is often around 80% of the Market Value.

Market Value - Is the value that the property will most likely sell for if the seller doesn't have to sell and is based on a sell for that day. So, say the property is in foreclosure and you have to sell immediately, your market value no longer applies.

Appraised Value - Is the value the property is given by an appraiser. Contrary to what many of the above postings say, this number is not inflated, because the bank has to make sure that if it is foreclosed on, that they can get their money back. Appraised values are generated by looking at recent sales in the neighborhood of similar houses. Appraised values will sometimes consider how fast the market is changing.

Answer 3

Assessed value is the value of your property for taxation purposes. It really does not reflect market value; it may be less or more than market value. If it is more than you have a basis to reduce your property taxes. If less then leave it alone.

Appraised value and market value are the same- the expected selling price in the open market. It has to have sufficient exposure on the open market. It cannot be between related parties or a short sale.

There is a difference because the assessed value is a specific value for taxation purposes. Realistically, it is not market value due to the fact that your county assessors do not have the time or manpower to appraise each individual parcel every year; they use a mass appraisal programs that calculates values for entire blocks and neighborhoods.

Answer 4

It depend on where you are, but for California:

Assessed value is the property value for tax purposes -- because of Proposition 13 (passed in the 1970's), unless a house is sold this value can only go up by a couple percent per year (this was to keep elderly and other fixed-income people from being taxed out of their homes as property values increased). When a home is sold, the assessed value is adjusted to the sales price and then can only increase from there at the Prop 13 rate until it is sold again.

Fair Market or Just Market value is what you would expect to sell it for (or pay for it) if it went on the market.

Appraised value is primarily for mortgage lenders -- it tells them what the house should be expected to be worth in the near future, in other words what they can safely lend you in order to purchase the house without taking on too much risk. Usually this will be close to the Fair Market Value, but if the area in which the house is located is undergoing significant increases or decreases in property values, they may not be so close. Increasing values mean they will lend you more today than it is really worth, because as long as you don't default in the first year or two they can get their money back out. Falling values means they won't lend you as much as it's fair market value would indicate, because if you default then they will have to sell the house for less than they lent you and they will be out money.

Answer 5

A homes assessed value is in basic terms a mathematical calculation that an assessor comes up with. that's consistent with previous revenues interior the section, helpful factors of the domicile, situation of the domicile vs. the previous properties with the comparable helpful factors or without. exams are many times used to justify a financial company very own loan. industry value is what an particularly purchaser is prepared to pay for the valuables. it is what that's properly worth to a actual purchaser. you could say a materials is appraised at $2 hundred,000, yet whilst each and all the consumers grant $180000, it is the industry value. temporarily, a materials is unquestionably properly worth what a purchaser is prepared to pay for it. the present financial disaster is inflicting the appraised value and the industry value to say no. the internet consequence is the cost of materials is declining.

Answer 6

The assement is what the man thinks your house SHOULD be worth, they exagerate it so they can shake you down for the biggest tax bill they can...the good thing is it isnt supposed to go up that much if you own the crib for a long time...

the market value is what you could expect a typical buyer to pay for the house in its current conditon,

The appraisal is kind of weird....your mortgage lender and real estate broker want it to be as large as possible, so they can get the most money, this figure is often exagerated.

Answer 7

Appraisal- to evaluate taking into considering all aspects of land cost, present trend, likely impact due to changes around, availability of facilities existing, if built ones- life left and depreciation, refurbishing cost etc.,
Market value-value based on market conditions based on Govt fixed rate for tax on land and property
Assessed value- based on appraisal including the market value.
VR

Answer 8

Michael Dove and Tyrone Williams asked the same question. You should read the answers side by side.

Answer 9

Was curious on the answer to this as well