A figure determined by a public tax assessor to calculate annual property taxes. It often represents only a percentage of the market value (e.g., 80% or 90%) and may only be updated every one to five years.
Buying a home below its is common because assessed values—used by local governments strictly for calculating property taxes—often lag behind real-time market trends or are calculated using formulas that differ from fair market value . While a low assessment can lead to lower property taxes, it is the appraised value that matters most for securing a mortgage. Understanding the Key Valuations buying a house below assessed value
It is critical to distinguish between the three primary ways a home is valued during a transaction: A figure determined by a public tax assessor