Appraised and assessed values are typically mistakened for each other. As a home buyer and home seller, it is useful to distinguish the difference between the two. Details on New Hampshire appraised and assessed values can be found below.
Definition Of Assessed Values
Municipalities levy a tax on residential properties. The amount is based on a percentage multiplied by an assessed value of a home. Assessments are used strictly for determining taxes and do not actually match the market price. Every locality formulates assessed value using different criteria. They often include acreage, interior features, and exterior features such as garages. Municipalities can re-assess real estate values and/or adjust the property tax rate annually.
Definition Of Appraised Values
An appraisal is a determination of the market price of a home by a trained professional based on specialized techniques. Mortgage companies employ appraisers to validate that a loan is not being provided for higher than the current market price of a home. It is a way of evaluating their investment given that they hold most of the risk until you pay down the loan. Appraisers traditionally pull a few similar homes that previously sold in the same or similar vicinity. Since the real estate market can change constantly, using recent sales is important for a valid appraisal.
Details On New Hampshire Appraised And Assessed Values
The market value of a property is determined by what a buyer is willing to pay, which can adjust at any time depending on factors such as financing options. Buyers should avoid associating assessed values with the selling price of a property since they do not fluctuate the same. Some locations infrequently change assessed values and regularly increase tax percentages instead of valuations. Only an appraisal can provide an accurate reflection of market value. This blog regarding details on New Hampshire appraised and assessed values was compiled by Donna DuFour at Accurate Title. For additional information on this and other real estate topics, contact Donna at 800-639-4405 or firstname.lastname@example.org.