The assessed value is usually less than the market value. The key differences are as follows – #1 – Factors Affecting Calculation Source: Assessed Value vs Market Value () Key Differences Let’s see the top differences between Assessed vs. The market value is calculated by the real estate agents on behalf of their clients. Simply put, it is the price that buyers are ready to give, and a seller is ready to accept in an open market transaction. The more the buyers interested in the property, the more the value it can fetch for the seller and vice versa. It is governed by the economic forces of demand and supply. Market Value is the most probable price that a property will fetch in the open market as of today. There are a lot of factors that decide how much property can be valued. Source: Assessed Value vs Market Value ()Ī property is more than a piece of land or price per square foot. You are free to use this image on your website, templates etc, Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked These rates decide the amount of taxes that owners will be liable to pay. Higher is this value, the higher is the tax levied.įor example, local authorities (city assessor) will determine the land rates and rates of the houses constructed on these lands. It is calculated mainly for tax calculations, which are directly proportional to the assessed value. The assessed value is calculated based on a standard procedure by the municipalities and the local administration. Let’s dive in further to understand this difference. Although they might sound similar and sometimes are used interchangeably, they are quite different from each other. Difference Between Assessed and Market Valueīoth Assessed Value and Market Value are mainly related to real estate valuation and are used for valuing property where market value as the name suggests that the value of the property that we receive if we plan to sell it today, on the other hand, assessed value is based on standard procedures and used by local authorities and for tax purposes.Īssessed value and market value are terms related to real estate valuations that most people get confused about.
0 kommentar(er)
