Appraisal and assessment values are frequently confused with one another. As a home buyer and home seller, it is crucial to distinguish the difference between the two. Information on MA appraisal and assessment values can be found below.
What Are Assessment Values
Municipalities charge a tax on residential properties. The amount is determined by a pre-established rate times an assessed value of a property. Assessments are used strictly for determining taxes and do not actually reflect the real estate market value. Every town figures assessed value based on different criteria. They often include the amount of land, interior living area, and exterior amenities such as sheds. Municipalities can re-assess house values and/or elevate the property tax calculation at regular intervals.
What Are Appraisal Values
An appraisal is a estimation of the current value of a home by a authorized professional employing specialized calculation methods. Banks use appraisers to validate that a loan is not being provided for higher than the current market price of a property. It is a way of evaluating their investment given that they bear most of the risk until you pay down the loan. Appraisers traditionally pull several similar houses that sold within the last 6 months in the same or similar area. Since the real estate market can increase or decrease very quickly, evaluating recent sales is important for an accurate appraisal.
Information On MA Appraisal And Assessment Values
The actual value of a property is defined by what a buyer is willing to pay, which can adjust at any time based on related factors such as the economy. Buyers should use caution when associating assessed figures with the market price of a home since they do not change with one another. Some localities infrequently alter assessed values and traditionally increase tax rates instead of valuations. Only an appraisal can provide a true indication of market price. This blog regarding information on MA appraisal and assessment values was prepared by Christopher Graves at Emery Federal Credit Union. For additional details on this and other real estate topics, contact Christopher at 781-759-1200 x22 or christopher.d.graves@gmail.com.
