Appraised Value Vs. Assessed Value of Property
Home valuation methods are sometimes difficult to understand. While the appraised value and the assessed value of a home have similarities, they have many differences and often come in at different numbers.
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Appraised Value
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The New York Times states the appraised value of a home is usually done to determine the value before the home is sold. Many lenders require an appraisal to be done before a loan on the property is issued.
Who Gives Appraised Value
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An appraised value is usually given by a certified appraiser. According to Loan Safe, appraisals are usually done by an independent third party, not associated with the seller or buyer of the house.
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Assessed Value
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Assessed value is different from appraised value in that it is used to determine tax basis of a property. Properties are assessed when they are purchased, usually reassessed every time they are sold and yearly in most states.
Who Gives Assessed Value
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Assessed value is usually determined by the county tax assessor's office. Loan Safe states that the county tax board compares similar homes in your area to your home to determine the assessed value.
Similarities
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Appraised value and assessed value are similar in that they are both quantitative numbers establishing value and they both play a role in the process of selling houses.
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References
- Photo Credit Image by Flickr.com, courtesy of Daniel Rothamel
