Property appraisal and property assessment are different. However, both property appraisal and property assessment are valuation methods. They are used by real estate agents and buyers when negotiating prices and sealing deals. Both property appraisal and property assessment involve determining a property’s value.
Property appraisal entails determining the actual market value of a property at a specific time. The appraisal value of a property is determined by considering the value of the recently sold properties within the last 90 days. The considered properties are of similar or equal comparison and location with the property that is being appraised. Nevertheless, the appraiser makes adjustments for the differences that may include square footage, location, and bathrooms.
Property appraisal should be done by a certified and licensed appraiser that has experience in current data evaluation. As such, you should schedule a property appraisal whenever you want a comprehensive valuation of your residential or commercial property.
A professional property appraisal entails analysis and evaluation of information about the foundation, structure, damage as well as the current condition of the property. It provides a specific value of a property based on the most recent sales of similar properties, size and location. Property appraisal enables buyers and sellers to determine the accurate or fair value of a property.
Property assessment is done by a municipality or town with an aim of setting property taxes. Thus, property assessment determines the taxes amount that property owners pay. Nevertheless, this assessment is based on the statistics of the past fiscal years. And it is usually done before tax collection starts. Each property in a municipality is assigned a value by a tax assessor. Property assessors may have appraisal licenses. They can also ignore factors like the property’s condition. As such, the value provided after an assessment may not reflect the actual property market value.
What’s more, property assessment is usually conducted after a long period such as 10 years. But, there are governments and municipalities with shorter or longer assessments. Nevertheless, property assessment is mostly under-valued, over-valued, or outdated. Since most property assessors do not consider or assess hidden problems in properties, they provide assessment values that do not indicate the true value of properties.
Property appraisal and property assessments give property owners hints about the worth or value of their properties. However, the value or worth of a property can be defined differently on the basis of each valuation. Property appraisal is generally beneficial to a property seller. Nevertheless, property owners are required to consider assessed values of their properties and factor in appraisal value to know whether to make tax appeals.
Generally, property appraisal and property assessment are estimates of the price or value of a property. However, to know the actual value of your property, you must conduct extensive research. And, working with an experienced real estate agent will enable you to know the price at which similar properties are selling in the market. Thus, in addition to getting a property appraisal and assessment, seek help of a professional realtor when selling or buying a property.