Appraised and assessed values are often confused with each other. As a home buyer or home seller, it is crucial to distinguish the difference between these terms. The difference between MA appraised versus assessed values can be found below.
What Are Assessed Values
Localities levy a tax on residential properties. The amount is determined by a pre-established rate multiplied by an assessed value of a property. Assessments are created strictly for measuring taxes and do not by any means relate to the current market price. Every city calculates assessed value based on different criteria. They commonly include the amount of land, interior condition, and exterior components such as decks. Municipalities can re-assess home values and/or increase the property tax rate at standard intervals.
What Are Appraised Values
An appraisal is a estimation of the market price of a property by a licensed professional based on specific techniques. Mortgage companies obtain the services of appraisers to validate that the value of a property meets or exceeds the amount they are loaning out. It is a method of evaluating their investment given that they bear the majority of financial burdern until you pay down the loan. Appraisers traditionally evaluate a few other listings that previously sold in the same or similar city. Since the real estate market can increase or decrease constantly, analyzing recent sales is very important for a valid appraisal.
The Difference Between MA Appraised Versus Assessed Values
The actual price of a home is determined by what a buyer is offering to pay, which can adjust at any time depending on related factors such as availability of options. Buyers must use caution when equating assessed values with the market value of a home since they do not change with one another. Some localities infrequently update assessed values and regularly increase tax percentages instead. Only an appraisal can generate an accurate indication of current market price. This blog regarding the difference between MA appraised versus assessed values was compiled by Bradford Pratt at REMAX on the Charles. For additional information on this and other real estate matters, contact Bradford at 781-316-5760 or email@example.com.