Appraisal and assessment values are often mixed up with one another. As a real estate consumer, it is beneficial to know what these words mean. Details on Bennington appraisal versus assessment values is provided below.
Definition Of Assessment Values
Municipalities charge a tax on homes. The dollar amount is derived from a set rate and an assessed value of a property. Assessments are used solely for determining taxes and will not actually relate to the market price. Every city figures assessed value differently. They usually account for land area, interior living space, and exterior amenities such as garages. Municipalities can re-assess house values and/or adjust the tax calculation yearly.
Definition Of Appraisal Values
Appraisals are a calculation of the market value of a home by a licensed professional employing specific calculation methods. Mortgage companies employ appraisers to validate that the value of a property justifies the dollar value they are loaning out. It is a way of protecting their investment given that they hold a large portion of the risk until you lower the balance of your mortgage. Appraisers typically evaluate a few other properties that sold recently in the a similar neighborhood. Since the market can change several times, evaluating recent figures is very important for a proper appraisal.
Details On Bennington Appraisal Versus Assessment Values
The market value of a property is defined by what a buyer is willing to pay, which will go up and down constantly based on factors such as availability of options. Consumers should avoid associating assessed values with the selling price of a home since they do not change with one another. Some towns rarely alter assessments and increase tax rates instead. Only an appraisal will offer a reliable reflection of present market price. For more resources on this and other related topics, contact and agent at Maple Leaf Realty, 802-447-3210, www.MapleLeafVermont.com