“TAXES ARE A PAIN IN THE ASS…ESSMENT”

There are 3 common real estate terms that are very commonly misunderstood & misused. Both buyers & sellers mistakenly use these terms interchangeably:

Assessment
Appraisal
Inspection

Knowing the difference is key & can save you some boucou bucks in the process.

Around March, you have to pay attention to your mail. Important tax docs are coming in & a lot of them can be confusing. My mom called me recently (HI, MOM!) Amidst her Pioneer Woman magazines & regular junk mail, was a tax-related document. She called me pretty upset because this document stated that my parent’s home was assessed for an amount that was ridiculously below what their home would sell for on the market.

She made a common mistake that many many many people make. They get their ASSESSMENT value & APPRAISAL value confused.

Here’s an easy, albeit slightly off color, way to remember that assessment is related to taxes: Paying your taxes is a pain in the ass…essment.

You pay your taxes based on a formula of your property’s ASSESSMENT value. That formula takes: Your property’s assessed value x millage for that area = property taxes

So ASSESSMENT has everything to do with TAXES & NOT the value of your home for resale.

Sellers: If your home is worth a million dollars but the assessed value is $70,000 – which number do you want your taxes based off of? A lower assessed value means lower property taxes.

Buyers: If you notice that a home is for sale & the assessed value is a fraction of that price – that’s a very good thing! Keep in mind, however, buyers that when you purchase a property, that can sometimes trigger a re-assessment of that property. It’s almost like the property tax people are hanging around the property tax office eating sour gummy worms & they get notified that someone just bought the house on Martin Ave. in Ellport. “Y’know… that reminds me, we haven’t raised the taxes on that Martin Ave. house in a while. Let’s go ahead & do that!” I think that’s how exactly how it works…

In short, ASSESSMENT value has to do with your taxes & NOT the fair market value of a property.

SUPPLEMENTAL VIDEO CONTENT ON THIS TOPIC:
Assessment vs. Appraisal

I’m Always Here & Happy to Help!

Katina Hunter

Team Lead for the Katina Hunter Team with Coldwell Banker
724-888-9020
Katina.Hunter@PittsburghMoves.com
www.HereAndHappyToHelp.com