Appraisal and assessment prices are frequently mistakened for each other. As a home buyer and home seller, it is important to remember the difference between these terms. A comparison of Burlington MA appraisal versus assessment prices can be found below.
What Are Assessment Prices
Municipalities levy a tax on homes. The calculation is based on a pre-established rate multiplied by an assessed value of a property. Assessments are created specifically for levying taxes and do not by any means relate to the current market price. Every city calculates assessed value using different formulas. They traditionally include land area, interior living area, and exterior components such as decks. Municipalities can re-assess real estate values and/or adjust the property tax rate on an annual basis.
What Are Appraisal Prices
An appraisal is a determination of the current value of a home by a authorized professional implementing specific techniques. Lenders employ appraisers to confirm that a loan is not being provided for more than the current market price of real estate. It is a part of their due diligence given that they hold most of the risk until you pay down the loan. Appraisers normally pull at least three similar-styled houses that recently sold within a certain vicinity. Since the market can vary several times, considering recent figures is important for an accurate appraisal.
A Comparison Of Burlington MA Appraisal Versus Assessment Prices
The actual price of a listing is defined by what a buyer is willing to pay, which can change constantly depending on circumstances such as the economy. Consumers should use caution when equating assessed values with the selling price of a home since they do not relate to one another. Some municipalities infrequently update assessed values and traditionally increase tax percentages instead. Only an appraisal can generate a true indication of present market price. This blog regarding a comparison of Burlington MA appraisal versus assessment prices was prepared by Peter DaMore at Law Offices of Peter T. DaMore Jr.. For additional resources on this and other related topics, contact Peter at 781-229-7900 or email@example.com.