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What is Assessed Value vs. Appraised Value?

What is Assessed Value vs. Appraised Value?

Want to know the difference between assessed value vs. appraised value? Put simply, the assessed value of a home is related to property taxes, while the appraised value is its fair market value as determined by a licensed appraiser. 

In this post, Scott Coldwell and our real estate professionals at Your Home Sold Guaranteed Realty - Coldwell Real Estate Services will discuss the key differences between these two valuations. We’ll cover their purpose, how they’re determined, and which one you should rely on during your real estate journey.

Key Takeaways:

  • The assessed value of a home is determined by a local government tax assessor. This valuation is used to calculate how much property tax the homeowner has to pay annually.
  • The assessed value of a home differs from the appraised value of a home because it reflects specific state or local tax policies, exemptions, and assessment ratios. 
  • Appraised value is determined by a licensed appraiser, and is used to estimate a property’s fair market value. Appraisals are usually requested and paid for by home buyers.

What is Assessed Value vs. Appraised Value?

Assessed Value

The assessed value of a home is determined by a local government tax assessor. This valuation is used to calculate how much property tax the homeowner has to pay annually.

Tax assessors evaluate the properties much the same way that appraisers do– by looking at their size, location, and recent improvements, as well as comparable property sales in the area. However, the assessed value of a home differs from the appraised value of a home because it reflects specific state or local tax policies, exemptions, and assessment ratios. 

In addition, assessed values tend to be more stable. They don’t fluctuate as much as appraised values, which can shift depending on current market conditions. For this reason, assessed values aren’t a good indicator of a home’s fair market value and should only be used for tax purposes.

Appraised Value

Appraised value is determined by a licensed appraiser, and is used to estimate a property’s fair market value. 

Appraisals are usually requested and paid for by home buyers. They’re often required by lenders because they ensure the lender isn’t giving a loan for more than the home is worth. However, home sellers and homeowners can also hire an appraiser to evaluate their homes. 

An appraisal provides a highly accurate valuation that can be useful if you’re planning to sell. That’s because they’re more sensitive to current market conditions and take into account recent sales and economic trends.

During their inspection, the appraiser considers factors like the condition, size, features, location, and comparable recent sales in the local area. Based on that information, the appraiser provides a detailed report on what the property would sell for in the current market.

Home buyers, sellers, and homeowners can be confident in the accuracy of appraisals because they’re conducted by certified professionals who follow industry standards and guidelines.

Get a Home Appraisal Today When You Work with Scott Coldwell

What is Assessed Value vs. Appraised Value?
Scott Coldwell

If you’re trying to buy or sell, checking a home’s appraised value is important. At Your Home Sold Guaranteed Realty - Coldwell Real Estate Services, Scott Coldwell and our real estate experts can easily help you find the market value of Ocala homes or connect you to the top appraisers in Ocala

Our track record of success speaks for itself– on average, we sell homes 48% faster and for 2.4% more money than our competitors. Plus, with our buyer and seller guarantees such as our Guaranteed Sale Program and Buyer Protection Plan, you can ensure a risk-free real estate experience.

Contact us today at 352-290-3512, send a message to [javascript protected email address], or use the form on this page to learn more about working with our team. Selling a home doesn’t have to be stressful when you work with the best realtor in Ocala and all of North Central Florida!

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Scott Coldwell $ 223 SW Broadway St, Ocala, FL 34471 352-290-3512
Scott Coldwell, Broker/Owner
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