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Finance: What is Assessed Value? 6 Views


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Description:

What is Assessed Value? Assessed value is used to determine a piece of real estate’s tax liability. An assessor measures what the property is worth and that value is used to calculate property taxes.

Language:
English Language

Transcript

00:00

finance a la shmoop what is assessed value well here's ass value, here's asset value.. [Ass eating grass and a house for sale]

00:10

that is if you own a home, there really two prices attached to it..

00:15

The price you pay for it, or can sell it for, that's the market value of your asset, your

00:21

home, and what your home is officially worth according to the government, well that's the assessed value..

00:29

the government assessed that your home was in fact worth $412,932

00:33

why two sets of house prices well to

00:38

keep things you know interesting and to get you to pay your taxes your state [Uncle Sam walks in on man in office]

00:42

charges you property tax just for the privilege of living in the state they

00:48

charge more for the guy living in the McMansion than they do for the guy

00:51

living in the one bedroom bungalow usually but they still need to figure [Large mansion and small bungalow]

00:55

out who pays what each state has a little different taxation system and some

01:00

states use a formula based on what you paid for the house or what your house is

01:04

accessed or perceived value is in California for example you pony up one

01:10

point two five percent of the purchase price the price you paid for your home

01:14

within some subsequent adjustments for inflation over time that's the rate pay [Inflation chart over time]

01:19

based on the purchase price the market price in other states the value of the

01:23

house carries an assessed value that is an assessor takes a look at your home

01:28

every so often and comes up with a dollar figure of what they guess the [Assessor person beside the assessed property]

01:32

house is well officially worth for tax purposes usually that number is lower

01:37

than what you actually paid for your house or what it would get if you would

01:41

sell it in the marketplace you know if you whine loud enough the assessor may

01:45

make an adjustment so that for at least that year your tax bill can come down [Man celebrates with assessor]

01:49

yeah whining about taxes it can have its benefits people and all that whining

01:53

yeah it'll make you feel like one of these guys

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