If you are in the home buying or selling market, its important to understand the difference between tax assessment and appraisal value.
The tax assessment is a tool local governments use to exact a property tax rate on residents. The local government determines your homes worth by reassessing the homes in the area you live in periodically. Tax assessment offers a general idea of home value. If you are curious about whether your tax assessment office is keeping up with the local market, telephone contact your REALTOR and ask them about the local appreciation value on homes to determine if they are up-to-date.
Home sellers should concentrate on the appraisal value. Mortgage lenders traditionally writes loans on a home for this amount. Location is the prime factor in appraising a property. An appraiser will look at homes that sold during the previous period to determine what similar properties have sold for in the same neighborhood. If your home is in a rural area, or if the sales in your area have been sluggish, the appraiser can expand their radius to locate similar homes for comparison. If there is home value inflation in the area, the appraiser will factor this in.