Appraised Value vs Market Value vs Assessed Value
Appraised value, market value, assessed value. What are they and what do they mean to you? Today we’re going to talk about the differences of assessed value, market value, appraised value. What are they, what does it mean to you and how did they come up with those figures?
Market Value
So, let’s start with market value. In the simplest terms, market value is simply what a buyer is willing to pay for a home. And in today’s market, you can see that market values are going up.
Appraised Value
So, let’s talk about appraised value. For an appraised value, those must be done by a licensed appraiser. And the value is based on location, homes that are sold in the vicinity, in size, like condition. They do pluses and minuses to come up with an appraised value that is then given to a bank for what they are willing to loan on the house.
Assessed Value
So, lastly, we have assessed value. I hear it all the time. How come this home is assessed for this, but they’re asking for this? The answer to that that is because towns are only required to assess your home for taxes every five years. Some of them do it less than five years, some them do it at five years. Let’s use Rochester, New Hampshire, for example. Their last assessment was done in 2019. The market is different today than it was in 2019. How about Manchester, New Hampshire, their last assessment was 2016 and here we are in 2021. You can see where that’s a little bit different. The assessments done then are done for the purposes of taxes only. I’ll make another video on that whole process and how that works out because each town has their own tax rate. Click HERE to see all of the tax rates per NH town.
I hope you found this information useful and informative. The difference between market value, assessed value, and appraised value are always going to be different.
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