Appraisal Value vs. Market Value Question.?

Question

I am a new homeowner and I've recently recieved a notice in the mail from the Comptroller's Office informing me of the Appraisal / Tax value of my home. I purchased my home for $149,000 in Clarksville, TN (Montgomery County). The notice states that the Appraisal Value is $132,500. The house is new construction and in a totally new neighborhood in our town. Can anyone tell me how the appraisal value is different from the market value, or if there's even a difference in the two? Thanks!!

Answer 1

The Appraisal/Tax Value of your home is the basis upon which property taxation is calculated and collected. It may or may not be relative to actual market value.

Do not assume that the taxing district can set the fair market value of your house.....relax....:)

Answer 2

What you received was the Assessed, not Appraised, value from the property taxing authority.

The assessed value and the market value may differ greatly as the party doing the assessment does not perform the same duties as an appraiser who compares your home to other similar properties what have sold within the last 6 months.

The assessed value is normally lower than the actual market value which means you are paying less in property taxes than if the home were being taxed on market value. That is a good thing.

Answer 3

The tax appraisal value is the valuation of your home for tax purposes, little relevance to market value which is what someone will pay for the home. Tax appraised value is calculated against a multiplier to determine the tax payable. The tax valuation tends to play "catch up" with the market, and is often inaccurate. A lot of homeowners are feeling the squeeze now because tax valuations are catching up with the boom whereas the market is on a decline. One trick that some tax districts are rumoured to use is give a low valuation to keep owners happy, then play with the multiplier. That way they get the tax revenue they want but have to spend less time re-assessing homes.

Answer 4

No. The appraisal from a economic organization's attitude in basic terms suppourts the loan volume stronger. So, the economic organization figures what they might get out of the valuables in the form of a liquidation state of affairs. In any journey, the economic organization will continually loan agst the lesser of purchase fee or appraised fee. In thsi case, it quite is solid that the fee got here in slightly bigger than the fee. If the reversse had got here approximately, the economic organization would ought to shrink the loan volume.....