House Appraised Value vs House Assessed Value

House Appraised Value vs House Assessed Value

The Mary Ellen Vanaken Team of Keller Williams Realty - http://www.mevhomes.com

Confused about house appraised value vs house assessed value? Many people confuse assessments and appraisals.

An appraisal is a report created by an appraiser to determine the house appraised value.  The appraiser uses recently sold prices of similar properties in the area making adjustments for differences between the subject property and those being compared. The appraiser usually combines the "Market Approach" with a second method called the "Cost Approach" (determining the cost to rebuild) or  the "Income Approach" (used on properties that produce income) to determine the homes value. Appraisals are done when a property is to be financed or refinanced.

 An assessment is the house assessed value placed on a property by the town assessor's office for the purpose of determining the property tax due. An entire town will be assessed during a 12 month period with values determined by a group of qualified assessors after viewing properties and interviewing owners. The combined house assessed value of all the town properties is used to calculate what the tax rate will be. Each year the town may re-evaluate the tax rate to obtain the monies needed to run the town based on that combined assessed value. When house assessed values become so outdated as to cause inequities between properties the town will then reassess.