Appraised and assessed home values are typically mistakened for each other. As a home buyer and home seller, it is important to understand the difference between the two. An explanation of Woburn MA appraised and assessed home values can be found below.
Definition Of Assessed Home Values
Municipalities levy a tax on residential homes. The calculation is derived from the tax rate times an assessed value of a home. Assessments are used only for determining taxes and do not necessarily match the current market price. Every town determines assessed value based on different criteria. They often include land area, interior condition, and exterior features such as garages. Municipalities can re-assess property values and/or elevate the property tax calculation at standard intervals.
Definition Of Appraised Home Values
An appraisal is a determination of the current value of a property by a trained professional employing specific procedures. Banks hire appraisers to validate that financing is not being provided for higher than the current market value of a property. It is a method of evaluating their investment since they hold most of the risk until you pay down the mortgage. Appraisers traditionally evaluate at least three comparable homes that sold within the last 6 months in the same or similar vicinity. Since the real estate market can vary dramatically, reviewing recent sales is very important for an accurate appraisal.
An Explanation Of Woburn MA Appraised And Assessed Home Values
The actual value of a property is ascertained by what a home buyer is willing to pay, which can change at any time based on related factors such as financing options. Buyers should avoid equating assessed values with the purchase price of a property since they do not change with one another. Some towns infrequently alter assessed values and commonly increase tax rates instead of valuations. Only an appraisal can generate an accurate indication of market value. This blog regarding an explanation of Woburn MA appraised and assessed home values was compiled by Scott Strang at Scott Gregory Group. For additional details on this and other real estate topics, contact Scott at 781-646-7600 or firstname.lastname@example.org.