real estate

Assessed Value

The dollar value assigned to a property by a government assessor for the purpose of calculating property taxes. This value is typically based on the property's market value, but may be adjusted by local assessment ratios or exemptions.

Example

“The assessed value of $250,000 on my property determines how much I'll pay in annual property taxes.”

Memory Tip

Think 'assessed' like being 'tested' - your property gets tested by the government to determine its tax value.

Why It Matters

Your assessed value directly determines your annual property tax bill, which can significantly impact your monthly housing costs and overall affordability.

Common Misconception

Assessed value is not the same as market value - it's often lower and updated less frequently than what your home would actually sell for.

In Practice

If your home has an assessed value of $300,000 and your local tax rate is 1.2%, you'll pay $3,600 annually in property taxes. When buying a home, check recent assessed values to estimate your future tax obligations.

Etymology

Derived from Latin 'assidere' meaning 'to sit beside,' as assessors originally sat beside judges to help determine values.

Common Misspellings

assesed valueaccessed valueassessed valuationassess value

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