What is the assessed value of a property?

The assessed value of a property refers specifically to the valuation that a tax assessor assigns for taxation purposes. This figure is typically based on a variety of factors, including the property’s market value, location, improvements made to the property, and comparable properties in the area. The assessed value is significant because it determines the amount of property tax that the owner will be responsible for paying.

In contrast, market value, although closely related to assessed value, is determined by a qualified appraiser and represents what the property would sell for in an open market. The selling price of the property may differ from both assessed and market values, as it reflects a specific transaction and can be influenced by various factors including buyer negotiation, market conditions, and property condition. Estimated rental income pertains to the income potential of the property rather than its value assessment, making it distinct from the concept of assessed value. Thus, the definition of assessed value aligns clearly with the valuation assigned by a tax assessor for taxation purposes.