What is an assessment and how does it differ from an appraisal
Each week we try to help you to understand some of the expansive, and often confusing Real Estate jargon. Last week we talked about appraisals, and how they can often be confused with the Home Inspection. We also receive many questions from our clients about the difference between an appraisal and an Assessment. These terms are very similar, yet quite different.
An appraisal, we learned, is a detailed single property valuation performed by a licensed appraiser. Appraisals can be used for obtaining a mortgage loan, home equity loan, home sale or estate valuation.
An Assessment, however, is a mass appraisal of property, that is usually conducted at the beginning of the year by local counties. They are based on the areas sales, which helps to determine the value for a large group of similar properties (like a neighborhood, for instance). This information is generally used to determine property tax amounts.
As you can see, appraisals are more exact, since they tend to be performed to determine the market value of a specific property. Whereas the purpose of an assessment is to determine the value for a large number of similar properties.
Questions about the value of your home or the local real estate market in general? Drop us a line!
