Question on property assessment

General Real Estate Investing
1

I’m searching for property assessment on my county’s tax assessor website. I notice there are two values, the appraised value and the assessed value. The appraised value is considerably much more then the assessed value. Can someone explain to me what the difference is between appraised and assessed? When doing comps, can you tell me which value I use?

Here’s an example of a property.

Appraised Value

Appraised Land Value $91,700
Appraised Building/Improvement Value 368,300
Total Appraised Value 460,000

Assessed Value

Assessed Land Value $36,680
Assessed Building/Improvement Value 147,320
Total Assessed Value 184,000

Value 2003

Total 2003 Appraised Value $460,000
Total 2003 Assessed Value $184,000

Value 2002

Total 2002 Appraised Value $525,700
Total 2002 Assessed Value $210,280

2

The appraised value is probably around what the house would sell for . The assessed value is probably the number used for calculating taxes. If you know the local millage rate, you can calculate taxes based on the assessed value, at least that’s how it works where I’m from.

3

The difference could be because the owner has exemptions, or disabilities, or homestead, which reduces the value, maintaining the same tax rate.

If you’re really unclear, contact the tax assessors office and have them clarify this for you, so that you’ll know exactly which figure to look at to determine value, or a taxable value for the property.

Asking questions is free, which can provide you with a wealth of value.

Good Luck!