What Affects Home Assessment Values?

Several factors impact a home's value.

The value of your home has an impact on a number of things: the amount of taxes you pay, amount of new loans you can take out and the amount your home actually captures on the market.

History

Property taxes were collected in ancient times. Modern property taxes come from the British practice of assessing value based on the property owner's ability to pay. In the early 20th century, citizens were elected for the job of tax assessor, but would often not assess the property of their neighbors at full value, sparing them some of their tax bill.

Geography

The saying goes that there are three important factors in real estate: location, location and location. The location of your home is probably the biggest factor in determining its assessment value. Homes in nice neighborhoods with good schools will retain their value. Homes located near a new highway or abandoned buildings will not receive high assessments.

Time Frame

Homes are typically not assessed annually; in fact, in some jurisdictions they are only assessed every three years. A variety of things can happen in the housing market in three years, so assessed value sometimes does not reflect market value.

References

• EH.net: History of Property Taxes in the United States
• Montgomerycountymd.gov: FAQ