What is the difference between assessed and appraised

Absolutely not! A property that has a higher assessed value than appraised value could wind up costing you more in taxes than you bargained for! You may wish to challenge your assessment to pay less in taxes overall.

Or, you may have a higher appraised value than your assessment — keep an eye out for a higher tax bill in the months to come! Thank you! When buying a home , the appraised value protects you from paying more than the house is worth.

Fair market value is what your house is expected to sell for. List price is the price a seller hopes to get for their home. On the other hand, fair market value is an estimate on what buyers are willing to pay for a home. The market value is determined based on what the home is sold for before any financing is included in the process. Overall, the appraisal value will be the most accurate when it comes to lending decisions. However, appraised value will not be the price the home is always sold for.

Fair market value is largely determined by the current housing inventory available in the local market. If inventory is very low, a house may sell easily at a listed price far above its assessed value. If inventory is plentiful, a seller may have to lower the listed price below the assessed value of the home in order to make a sale. The two words are not interchangeable, contrary to popular thought.

An appraisal determines the market value of a specific home at a specific time. The appraiser determines this value based on recently sold homes within the past 90 days. They are of equal or similar comparison and are located within approximately one mile from your home. Like everything in real estate, education is key. As a real estate professional, it is important to educate your clients. Understanding the difference between assessed value and appraised value is yet another tool for your kit.

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