Why is a home assessment usually lower than a home appraisal?

Question

When looking at property records, it seems that most houses have a much lower assessed value than what the home actually appraised and sold for. Why is this?

For instance: A home is appraised for $100,000, yet the county's assessment of the property is only $69,000.

Answer 1

Assessed values have several plusses but are never actual market value. Heres why, the market value changes as the market does. The assessor isnt looking for a house to buy and doesnt go inside the home. based on the time of construction and size of the home, and the typical lot value an assessment is not going to consider the desirable features of the inside of the house. Assessments are also adjusted in most cases on a yearly basis while the market can change within weeks. If assessments were actual market value taxes would be outlandish as much of the tax is a mil rate voted in for bonds, school levys and municipal projects. Those voted tax mil rates cannot be raised or lowered without a public vote, so the assessors job is to basically insure there is enough valuation in an area to cover local and county government expenses. One can however look down a block and compare assessed values of similar homes and see which ones in the assessors opinion were nicer. Appraisers will look at recent comparable sales and add that to other factors to come up with their usually higher opinion of value.

Answer 2

While there is no relationship between the two, it seems it would simpler if there were.

The assessed value of the property is determined using a complex method. It has to do with how recently a property was assessed, what percentage of value it is assessed at, the tax needs of the municipality, etc.

The appraised value is what an expert projects as the current value based on the market. While appraisals are not an exact science, that would be a closer approximation of the value of a property than would the assesses value.

Answer 3

even as there is no relationship between both, evidently it would want to a lot less confusing if there have been. The assessed nicely worth of the sources is determined utilizing a troublesome frame of mind. It has to do with how lately a sources change into assessed, what p.c. of fee this is assessed at, the tax needs of the municipality, etc. The appraised fee is what an suggested projects because the present nicely worth dependent for sale. even as fee determinations might want to not an particular technology, that is a nearer approximation of the fee of a sources than might want to the assesses fee.

Answer 4

An appraiser physically goes out and inspects the property as well as analyzing recent sales comps,market value,etc. The county tax assessor does not.