Appraised and assessed values are incorrectly confused with each other. As a home buyer or home seller, it is useful to distinguish the difference between the two. A comparison of PA appraised versus assessed values can be found below.
What Are Assessed Values
Municipalities levy a tax on homes. The amount is derived from the tax rate multiplied by an assessed value of a piece of property. Assessments are used specifically for measuring taxes and do not actually coincide with the real estate market value. Every city accounts for assessed value differently. They ordinarily include land area, interior living area, and exterior amenities such as garages. Municipalities can re-assess real estate values and/or adjust the property tax calculation at standard intervals.
What Are Appraised Values
An appraisal is a determination of the current market price of a home by a authorized professional employing specific techniques. Mortgage companies hire appraisers to validate that a loan is not being provided for higher than the current market price of a property. It is a method of evaluating their investment since they bear the majority of financial burdern until you pay down the mortgage. Appraisers typically pull at least three comparable properties that previously sold within a certain vicinity. Since the market will vary constantly, using recent sales is vital for an accurate appraisal.
A Comparison Of PA Appraised Versus Assessed Values
The market value of a listing is defined by what a buyer is willing to pay, which will change continually depending on factors such as availability of options. Buyers should use caution when associating assessed values with the market value of real estate since they do not adjust in tandem. Some locations infrequently change assessments and commonly increase tax percentages instead. Only an appraisal can provide a true indication of present market value. This blog regarding a comparison of PA appraised versus assessed values was prepared by Pedro Teixeira at FIT Credit. For additional resources on this and other related topics, contact Pedro at 215-613-8130 or pteixeira.fit@gmail.com.