Appraised and assessed home values are regularly confused with one another. As a home buyer and home seller, it is important to know the difference between the two. The difference between Bennington appraised and assessed home values can be found below.
What Are Assessed Home Values
Municipalities levy a tax on residential homes. The calculation is determined by the tax rate times an assessed value of a home. Assessments are created solely for levying taxes and do not by any means match the real estate market price. Every municipality formulates assessed value in a different manner. They typically include the amount of land, interior elements, and exterior features such as sheds. Municipalities can re-assess real estate values and/or change the property tax rate on an annual basis.
What Are Appraised Home Values
An appraisal is a estimation of the market value of a property by a authorized professional using specific techniques. Banks hire appraisers to validate that a loan is not being issued for more than the current market price of a piece of property. It is a part of their due diligence given that they bear a large portion of the risk until you pay down the mortgage. Appraisers always review several other houses that sold within the last 6 months in the same or similar neighborhood. Since the real estate market will vary several times, evaluating recent figures is critical for a valid appraisal.
The Difference Between Bennington Appraised And Assessed Home Values
The market price of a listing is determined by what a purchaser is willing to pay, which will vary continually based on circumstances such as the economy. Buyers should avoid comparing assessed values with the purchase price of a home since they do not change with one another. Some cities rarely alter assessed values and traditionally increase tax rates instead. Only an appraisal can provide a true indication of present market price. This blog regarding the difference between Bennington appraised and assessed home values was prepared by Troy Richardson at Maple Leaf Realty. For additional guidance on this and other related matters, contact any Realtor in our office at 802-447-3210.