A Comparison Of Appraised Versus Assessed Values in Franklin TN

People typically confuse appraised value with assessed value. As a home buyer or home seller, it is important to know the difference between these terms. A comparison of appraised versus assessed values in Franklin TN can be found in this article.

Definition Of Assessed Value

Municipalities require a property tax on residential homes. The calculation is derived from a pre-determined rate multiplied by the assessed value of a home. Assessments are created solely for determining taxes and will not by any means relate to the market price. Each locality calculates assessed values in a different manner. They ordinarily account for land value, interior features, and exterior features such as sheds. Municipalities can re-assess home values and/or increase the tax calculation yearly.

Definition Of Appraised Value

Appraisals are a calculation of the current market price of a home by a licensed individual implementing specific calculation methods. Banks employ appraisers to confirm that the value of a home meets or exceeds the dollar value they are loaning out. It is a part of their due diligence since they bear the majority of financial burdern until you reduce the balance of your mortgage. Appraisers traditionally review a few other houses that sold within the last few months in a similar vicinity. Because the real estate market can vary dramatically, reviewing recent figures is important for an accurate appraisal.

A Comparison Of Appraised Versus Assessed Values in Franklin TN

The market value of a listing is ascertained by what a home buyer is willing to pay, which can vary at any time based on circumstances such as the economy. Consumers should use caution when comparing assessed values with the market price of a property since they do not adjust in tandem. Some municipalities rarely change assessed values and increase tax amounts instead. Only an appraisal can offer an accurate reflection of current market price. This article regarding a comparison of appraised versus assessed values in Franklin TN was compiled by Jim Eaton at Blueprint Realty, Inc.