Assessed Value

AAA

DEFINITION of 'Assessed Value'

The dollar value assigned to a property for purposes of measuring applicable taxes. Assessed valuation is used to determine the value of a residence for tax purposes and takes comparable home sales and inspections into consideration. It is the price placed on a home by the corresponding government municipality to calculate property taxes. In general, this value tends to be lower than the appraisal fair market value of a property.

INVESTOPEDIA EXPLAINS 'Assessed Value'

This valuation occurs annually. It takes into account the overall quality of the property, property values and market conditions of the surrounding areas. Property owners who want to dispute the assessed value placed on their property can request a reassessment, which is a second evaluation of the value of the property. In some locations, property is given an assessed value that is 20% of the property's fair market value.

RELATED TERMS
  1. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  2. Section 1250

    A section of the United States Internal Revenue Service Code ...
  3. Capital Improvement

    The addition of a permanent structural improvement or the restoration ...
  4. Flipping

    A type of real estate investment strategy in which an investor ...
  5. Millage Rate

    The amount per $1,000 that is used to calculate taxes on property. ...
  6. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
Related Articles
  1. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  2. How Interest Rates Affect Property Values
    Personal Finance

    How Interest Rates Affect Property Values

  3. Don't Let Foreclosed Homes Ruin Your ...
    Home & Auto

    Don't Let Foreclosed Homes Ruin Your ...

  4. 5 Tricks For Lowering Your Property ...
    Taxes

    5 Tricks For Lowering Your Property ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center