The difference between the bank appraised value and the local town assesed valuation are often mistakenly thought to be interchangeable for one another. As a Newton MA home buyer or home seller, it can be insightful to understand the difference between these two terms. The following is the difference between Scituate MA appraisal and asessment values. Below are details on Newton MA Difference between Newton MA Appraisal versus Assessment Values, including benefits and considerations of each.
Difference Between Newton MA Appraisal
Definition of Assessed ValuesLike many municipalities in The Commonwealth, Newton MA charges a tax on residential homes. The calculation of the tax is derived from a percentage multiplied by an assessed value of a piece of property. Assessments are used strictly for levying taxes and does not actually reflect the real estate market condition. Each and every town calculates assessed value using different formulas. They usually include land area, interior living area, and exterior amenities such as garages. Newton MA can re-assess home values and/or increase the property tax percentage at regular intervals.
Definition of Appraised ValueAn appraisal is a estimation of a Newton MA homes market value by a licensed professional employing specialized methodologies. Lenders obtain the services of appraisers to determine the value of a home as opposed to to the sale price. Appraisers always review at least three other houses that recently sold within the same city. Since the Newton MA real estate market can change constantly within a time frame, comparing relevant sales is vital to a valid appraisal.
Newton MA Difference Between Newton MA Appraisal versus Assessment Values
The difference between Newton MA Appraisals And Assessment ValuesThe actual price of a Newton MA home is ascertained by what a buyer is willing to pay, which can adjust at any time depending on related factors such as availability of options. Buyers should avoid relating assessed values with the price of real estate. Assessed values are used only for tax purposes and do not adjust as often as the real estate market does. Some towns infrequently change assessed values and regularly increase tax percentages instead. Only an appraisal can generate a true indication of the market price of a Newton MA property.
This information on Newton MA Difference between Newton MA Appraisal versus Assessment Values was prepared by Darleen Foster and Brad Pratt, REALTOR at RE/MAX On the Charles. For additional information on Difference between Newton MA Appraisal versus Assessment Values or similar topics, contact Darleen at 617-448-7894 or DarleenFoster@remax.net and/or Brad Pratt at 781-316-5760 or at BradfordPratt@remax.net