One way to find the assessed value of your property is to check your county or local government’s website, which lists the assessed property values of real estate in the municipality’s taxable area. Checking your assessed value is correct helps you ensure that you’re not overpaying in property taxes. Read on to learn more about what the assessed value is, why it’s important, and more details about how to find it. Also learn how to contest the assessed value of your property, if you believe it’s incorrect.
What Is Assessed Value?
The assessed value of real estate is a determination of the fair market value for taxation purposes. It is determined by an assessor who works for the county or local government that collects your property taxes. Assessors use different methods to determine an assessed value, but they typically factor in the price at which similar properties have recently sold in the area to get an estimate for what the property could sell for. A property tax is an ad valorem tax, a Latin phrase that means “according to value” or “in proportion to the value of.” So, the lower your assessed value, the lower your property taxes, and vice versa. Now, let’s review how an assessed value compares with a market value or an appraised value.
Assessed Value Vs. Market Value
The market value is an estimate of what a buyer would pay for a home. Like an assessed value, it can factor in features of the home, recent sales of similar homes, and market conditions. It is not assigned by a municipality. The assessed value, which is assigned by a municipality, strictly determines what property taxes will be owed. A county might use a market value in its calculations for an assessed value, which may be a percentage of a market value. Municipal assessors do not necessarily update assessed values every year, but they must be updated regularly. For example, in North Carolina, counties are required to reassess property at least every eight years.
Assessed Value Vs. Appraised Value
The appraised value is an estimate of a property’s market value that is determined by a professional appraiser. It’s often used by banks in the lending process to understand the value of your home for underwriting. The appraised value is usually more in depth than an assessed value because an appraiser factors in more details of your home.
Where To Find a Home’s Assessed Value
Most counties and municipalities list the assessed values of the property in their taxable area on their website. Using the websites that you use to pay your property taxes is typically the best way to find your home’s assessed value. You will generally only need a street address or the account number listed on your assessment notice to find your assessed value. You can also contact your local taxation department directly, such as by phone or via email, to ask about your property’s assessed value. Find that contact information online or on your property tax notices. Also, your property’s assessed value does not necessarily change every year. The frequency that your local government reassesses your property varies according to its policies. For example, in Maryland properties are reassessed every three years.
Why Assessed Value Matters
Knowing the assessed value of your home helps you understand your property taxes so you can make sure they are accurate. If you believe your assessed value is wrong, you can contest the assessment with your municipality. You’ll need to file an appeal at your assessor’s office and submit any supporting documents about the value of your home that relate to correcting the assessment.
