Assessed Value vs Appraised Value With Robert Nichols

For first time home buyers, the process of buying a home can be quite intimidating. One area of concern is the Market/Appraised value vs the assessed value. In a seller’s market, where values are appreciating, buyers get concerned when they see an assessed value that is significantly below the list price. The reason this happens is because the assessed value always lags the market or appraised value. Assessed value is what your town or city feels your home is worth and taxes you on that value, not the appraised value. As a result, sometimes the assed value may be $100,000 or more below the market value in a seller’s market . This is actually a good thing for buyers and home owners, because you’re able to pay taxes based on a lower valuation until your property is re-assessed. In a declining market, assessed values are actually higher than the appraised value. In these instances, you should contact the assessors office to assess your home to get the assessed value in line with the market value so that your property taxes are appropriate. With this understanding, buyers should base their purchasing decision based on a Comparative Market Analysis to get an understanding of the Market/Appraised value.