These measurements include Tax Assessed Value, Tax Appraised Value, and Market
Assessed Value each playing a role in determining the worth of your property.
Tax Assessed Value; A Metric Influenced by Location
Tax Assessed Value varies depending on the region within the United States. It is
determined by tax authorities such as cities, counties, or states. In some cases, it may
align with the Market Assessed Value while in others it is derived by applying an
assessment ratio to the market value. This ratio based approach often results in a Tax
Assessed Value that’s lower than the Market Assessed Value.
To provide an example let’s consider a situation where homes in your area are
assessed at 100% of their market value. If your home is valued at $150,000 in the
market its Tax Assessed Value would also be $150,000. However if your taxing authority
applies a 70% assessment ratio the Tax Assessed Value, for your $150,000 market
valued home would be $105,000.
The Tax Appraised Value is determined by government tax assessors. Applies to both
estate and personal property. It is used for tax purposes influencing the tax
responsibilities of property owners.
The Market Assessed Value represents the estimated price at which a property would
likely be sold on the market. This value is determined by government tax assessors.
Takes into account sales data of similar properties within a specific study period. It
provides a view of market trends.
For example if a Market Assessed Value has a date of January 1 it may consider sales
from the past 12 months ending on September 30 of the previous year. The length of
these study periods can vary depending on the jurisdiction for assessments. Since this
valuation relies on sales data Market Assessed Values generally lag behind market
values.
Understanding these nuanced value metrics—Tax Assessed Value, Tax Appraised
Value and Market Assessed Value—can help you navigate property valuations
effectively in the real estate realm.
Whether you’re collaborating with a real estate agent or trying to assess the value of
your property, in the market having an understanding of these figures plays a crucial
role in making informed choices and gaining a clearer view of your real estate assets.
