Appraised and assessed prices are incorrectly mistakened for each other. As a home buyer and home seller, it is beneficial to understand the difference between the two. An explanation of Palm Beach FL appraised versus assessed prices can be found below.
Definition Of Assessed Prices
Municipalities charge a tax on residential real estate. The sum is derived from the tax rate times an assessed value of a home. Assessments are used specifically for determining taxes and do not by any means reflect the current market price. Every city accounts for assessed value using different factors. They commonly include acreage, interior living area, and exterior components such as garages. Municipalities can re-assess house values and/or change the property tax percentage annually.
Definition Of Appraised Prices
An appraisal is a calculation of the current value of a home by a licensed professional employing approved procedures. Mortgage companies hire appraisers to confirm that financing is not being provided for more than the current market value of a property. It is a method of protecting their investment given that they bear most of the risk until you pay down the mortgage. Appraisers normally review several similar homes that previously sold in the same or similar city. Since the real estate market can change very quickly, considering recent sales is very important for a valid appraisal.
An Explanation Of Palm Beach FL Appraised Versus Assessed Prices
The market value of a home is determined by what a buyer is willing to pay, which can adjust at any time depending on related factors such as availability of options. Buyers should use caution when relating assessed figures with the price of a home since they do not fluctuate the same. Some locations infrequently change assessed values and regularly increase tax rates instead of valuations. Only an appraisal can generate an accurate indication of market value. This blog regarding an explanation of Palm Beach FL appraised versus assessed prices was compiled by Sonny Solomon at The Keyes Company. For additional details on this and other real estate topics, contact Sonny at 561-247-1047 or sonny@sonnysolomon.com.
