Assessed Value is the assessment or evaluation of any property for understanding its value/worth. This sum is the assessed value. It is done on the annual basis in most cases, taking aspects like the valuation of the property and market circumstances into account.
When we talk of assessed value, we mean the value that is assigned to any property or real estate asset for taxation purposes. It takes several factors into account, including the values of comparable assets nearby or in the locality. The assessed value calculation is sometimes done in the form of the percentage of the property’s fair valuation in the market. The assessed value is used for working out the ad valorem tax or the property tax in simpler terms. An assessor of the Government holds responsibility for assigning this assessed valuation of any property and also for periodically updating the same. The assessed value also accounts for several factors like a property’s condition, quality, square footage/area, local valuations, features, market circumstances, and the like.
Assessors may personally visit properties or use other calculation models/frameworks for working out the assessed value of real estate. This determines the property tax or ad valorem tax, and is hence indispensable for the real estate sector. Municipal corporations and other local authorities usually undertake this valuation exercise.
