5 minute read by Jason Gelios REALTOR®
Many people wonder what the difference is between the assessed value and the appraised value of a home.
The assessed value is just an estimate by the city/county to determine the homes tax amount. They don't look into any other factors like an appraiser would. The assessed value can only increase by a certain percentage per year. An appraiser will look at comps, updates etc. Market value of a home can increase higher than assessed value. Oftentimes when a new owner closes on the home the tax amount will be higher than what the previous owner was paying.
An appraisal is a more accurate value of a property. Keep in mind though it is only a snapshot in time and can change due to other homes being sold and numbers adjusting. In some cases a home owner could use an appraisal to potentially lower there taxes if the appraised value is less than what the property is being assessed for by the city/township.
One other tip would be to make sure all information about your property is accurate with the city or township. One mistake by them could cost you more in taxes per year.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the book Think like a REALTOR®, Creator of The AskJasonGelios Real Estate Show and an Expert Media Contributor.