People usually confuse appraisal values with assessment values. As a home buyer or seller, it is crucial to distinguish the difference between the two. An explanation of MA appraisal and assessment values can be found in this blog.
Definition Of Assessment Values
Localities levy a tax on homes. The sum is derived from a set rate multiplied by the assessed value of a piece of property. Assessments are used strictly for calculating taxes and will not really relate to the market price. Each municipality formulates assessed value using different criteria. They traditionally include land area, interior features, and exterior components such as sheds. They can re-evaluate home values and/or increase the property tax rate at regular intervals.
Definition Of Appraisal Values
Appraisals are an analysis of the market value of a property by a licensed professional implementing specialized procedures. Lenders use appraisers to validate that the value of a home justifies the amount they are loaning out. It is a means of protecting their investment given that they bear most of the risk until you pay down the mortgage. Appraisers always review several other properties that recently sold within a certain vicinity. Since the real estate market will increase or decrease constantly, evaluating recent figures is very important for an accurate appraisal.
An Explanation Of MA Appraisal And Assessment Values
The market price of a home is defined by what a buyer is willing to pay, which will change constantly based on related factors such as the economy. Buyers should be careful when comparing assessed figures with the selling price of real estate because they do not adjust in tandem. Some municipalities do not often modify assessed values and elevate tax rates instead. Only an appraisal can generate an accurate indication of present market price. This blog on an explanation of MA appraisal and assessment values was prepared by John Martino at Martino Law Group. For more information on this and other real estate topics, contact John at 781-606-9002 or JohnMartino@martinolawgroup.com.