Understanding assessed value: How does it compare?

by Zoryana Rawlins 01/07/2022

Finding the value of your home requires knowing the assessed value, appraised value and market value of the property. While these terms all determine how much your home is worth, each is used in different ways. Here is a quick guide to assessed, appraised and market value to help:

Assessed value

Assessed value is based on a calculation involving both the fair market value and the assessment rate percentage. Assessment rates vary from one county to the next and can change. To find the assessed value, you multiply the assessment rate percentage by the fair market value to find an estimation of what the property is worth.

Appraised value

Appraised value can be determined by an appraiser. A professional appraisal includes a careful visual inspection of your home to make sure it meets specific standards. You can use appraisal value when buying, selling or refinancing a home.

Fair market value

The fair market value of a property is based on a wide range of factors. Real estate agents can determine the fair market value by evaluating the size, location, condition and features of the home. It can also be affected by the value of similar properties in your area. Knowing the market value of your home is crucial in negotiating a fair buying or selling price.

If you're planning to buy or sell a home, it's important to understand how to find property value. Because they affect both purchase price and property taxes, these values can help you make more informed financial decisions.

About the Author
Author

Zoryana Rawlins

Zoryana Rawlins is a highly motivated and self-driven REALTOR® who combines a love of the industry with a passion for constant learning and self-improvement. Before getting into the real estate business, Zoryana previously taught at ICA Language School and Foreign Service Institute of U.S. Department of State. She was a very responsible instructor and very attentive to the needs of her students. Her hard work and listening skills helped her students achieve high-level positions. As your real estate agent, Zoryana utilizes up-to-date technology tools to market your property, hosts your Open Houses, uses her negotiation skills to secure the best deal for you as well as smooth and flawless transactions that will ultimately achieve your satisfaction. Zoryana is active with Northern Virginia Association of REALTORS® and the National Association of REALTORS®. A lover of all things Virginia, Zoryana lives in Falls Church, Virginia, with her husband Michael, their son Roman and two adorable dogs Tuzik and Michiko.