If you own your own home, you may be wondering if your taxes will change based on how much your home is worth. The short answer is no, it won’t change anything about your taxes. But you should know a few things about how appraised values work and how they can affect the value of your home.
What is an Appraisal?
An appraisal is when a trained professional figures out how much a piece of property is worth. Appraisers use a number of methods to figure out how much a property is worth, such as comparing it to other properties in the area and looking at its condition and features. Lenders usually ask for appraisals when a homeowner wants to refinance or sell their home.
How Appraised Value Impacts Your Home’s Value
Even though your home’s appraised value doesn’t directly affect your taxes, it can affect how much your home is worth. If your home’s appraised value is higher than its assessed value, it could mean that your home is worth more than what the tax assessor said it was worth. If you want to sell your home, this could be good news because it could mean you can list it for a higher price. But if the assessed value of your home is higher than its appraised value, your property taxes could be higher than they should be.
What is Assessed Value?
The assessed value is the value that the tax assessor gives to your home in order to figure out your property taxes. This value is usually based on how big your home is, where it is, and how good it is. In some places, the assessed value of your home is based on a percentage of what it is worth on the market. It’s important to remember that assessed value is not the same as market value or appraised value.
In the end, the appraised value of your home does not affect your taxes directly, but it can affect the value of your home, which could affect your property taxes. By knowing the difference between the appraised value and assessed value, you can better understand how the value of your home is calculated and how that can affect your finances. Please don’t hesitate to contact us if you have any more questions about appraisals, assessed values, or property taxes.