Assessed value is used to determine the property taxes due on real estate.
Assessed value is normally lower than the appraised value of a residential property, because it is not looking as much at the value of the home, but rather the value of the property, for property tax assessment.
While the assessed value does have to do with the market value of real estate, most calculations only use average home prices the area, found in local real estate listings, as part of the valuation. The “ask” prices are going to be higher than the prices at which they’ll sell.
It is a value given by a government assessor to each property in an area, and most areas will have similar rates per square foot or acre. Assessed value can be an important factor in the rating of municipal bond issues, since the ability of a city to generate revenue based on property taxes will depend on the assessed value of the properties.
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