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. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Assessor

    A local government official who determines the value of a property ...
  3. Taxes

    An involuntary fee levied on corporations or individuals that ...
  4. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
  5. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  6. Reassessment

    The process of redetermining the value of a parcel of real estate ...
Related Articles
  1. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  2. Personal Finance

    How Interest Rates Affect Property Values

    When interest rates fall, real estate prices tend to increase. Why? Find out here.
  3. Home & Auto

    Don't Let Foreclosed Homes Ruin Your Neighborhood

    Empty homes in your neighborhood aren't just eyesores - they can affect the value of your property.
  4. Taxes

    5 Tricks For Lowering Your Property Tax

    Find out what steps you can take to reduce your bill.
  5. Home & Auto

    7 Ways To Increase Your Home's Appraisal Value

    When it's time to sell your home – or refinance it – it will need to be appraised. Here's how to make sure the valuation is as high as possible.
  6. Home & Auto

    Key Home Upgrades That Make Or Break The Deal

    When making a home purchase, pay attention to key features of the home that either should meet a certain standard or should be upgraded by the seller.
  7. Home & Auto

    Best Types of Remodels For A Smart Sale Strategy

    Consider these improvements to your home if you want to increase its resale price.
  8. Home & Auto

    Universal Design Improvements That Increase Your Home's Value

    Universal design improvements yield great returns for homeowners, either through increased future comfort, or broader market appeal for their home.
  9. Home & Auto

    8 Common Refinance Mistakes

    As mortgage rates creep higher, there's still time to dump your mortgage rate for a lower one. But don't ruin your chance at a refinance by making mistakes
  10. Home & Auto

    10 Questions You Forget to Ask When Buying a House

    If you are thinking about buying a home, you are not alone. According to the New York Times, more Americans are getting home-buying fever.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center