Assessed valuation is extremely important for government purposes, real estate, and the buying/selling of homes. When someone is interested in selling their home, they will hire a real estate agent to do this. The real estate agent will break down the assessed valuation into different parts such as:
– Real estate information. Realtors will often be well-versed in other factors that can affect the valuation of a home. If any outstanding repairs, issues, or significant drawbacks affect the house’s value, a realtor will tell their client that these will need to be subtracted from total valuation. Also, a real estate agency will generally hire an assessor to come in and do the valuation.
– Property tax values. Property tax values are based on the quality and size of the property, so they need to be taken into consideration. Generally, the higher the value of a house, the higher the property tax values will also be. If one can receive the property tax values for something, then they can view the factors that account for the taxes, better helping them understand the value of their property.
– Market comparisons. The assessed valuation of a home has a lot to do with how other homes on the market are priced.Generally, this number is lower than what is called the fair market value, which is usually higher than the assessed valuation of a property Also, it is never guaranteed that a market value will go up or down with time; the market tends to take sudden plunges or skyrockets. Knowing these facts can help inform consumer decisions as well. For example, if a house in California is five bedrooms and was thought be 1.5 million, but took a sudden dip to 1.15, it would be a bad time to sell the house but a great time to buy it.
– Geographic location. Generally, the better the geographic location of the property, the more value it will have. It is important to understand particular geographic locations because every location has an individual market.
– Government purposes. The government will take the numbers from the assessed valuation and keep an ongoing record for tax purposes.
Disputes
It is common for the owner of a particular property to believe the valuation on their house was wrong. Thus, if an owner wants to pursue a reevaluation, they can have a reassessment done on their property. However, there is no guarantee that this reassessment will show anything different.
