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"Assessed Value" is a term in real estate that refers to the dollar value given to a property by a government official, called an assessor. This value is used to calculate how much someone has to pay in property taxes. The assessed value may not always be the same as the actual market value or the price someone might pay to buy the property.
Let's say you have a house, and the assessor decides it's worth $200,000. This assessed value will be used to figure out how much property tax you have to pay. If the tax rate is 1%, you would owe $2,000 in property taxes each year.
"A Deep Dive for Real Estate Agents and Appraisers"
Here are some additional points about "assessed value" that can be important for your real estate agent and appraiser exams:
Assessment Ratio: In some jurisdictions, the assessed value is calculated as a percentage of the property's fair market value. This percentage is known as the assessment ratio, and it can vary widely from one jurisdiction to another.
Reassessment Periods: Property assessments aren't typically a one-time event. Jurisdictions often have reassessment periods during which all properties in the area are reevaluated for tax purposes. These periods can be annual, every few years, or triggered by specific events, like a property sale.
Tax Rate: Once the assessed value is determined, the local government applies a tax rate (also called a mill rate) to calculate the property taxes owed. Understanding how tax rates work and how they're applied can be crucial in real estate transactions.
Appealing Assessed Value: Property owners often have the right to appeal their property's assessed value if they believe it's too high. This process typically involves presenting evidence, such as an appraisal or recent comparable sales, to support the claim for a lower assessment.
Impacts on Buying/Selling: Assessed values can impact the buying and selling process. A high property tax bill (due to a high assessed value) can be a deterrent for some buyers. As a real estate agent, you'll need to know how to navigate these conversations.
Remember, understanding property taxes and assessments is a critical part of real estate knowledge. Each jurisdiction can have its own rules and regulations, so be sure to familiarize yourself with the practices in your area.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
In the world of real estate, a term you'll need to know,
Is assessed value, my friend, it's part of the tax flow.
An assessor gives a value, to each property in town,
To calculate the taxes, that keep the town from a frown.
So when you study real estate, and terms that come alive,
Remember assessed value, it's part of the tax hive!