Will my appraisal affect my assessment?
Will my appraisal affect my assessed value?
Will my appraisal affect my taxes?
These are three most common questions that we receive and the short answer to these questions is a likely “no” while the long answer may be a “yes”. It all depends upon where that appraisal goes, what the appraisal states and who lands their hands on the appraisal.
An appraiser provides an appraisal while an assessor provides an assessment. An appraiser does not provide an assessment, and an assessor does not provide an appraisal. Although both an appraiser and assessor provide an indication of value, the use of that value is different.
In most cases, an appraisal is typically ordered by a lending institution (bank or credit union) on behalf of a borrower when a person or group is looking to purchase a property. The appraisal is ordered so that the lending institution can have an unbiased indication of market value for a mortgage.
An assessment is performed by an assessor on behalf of a community. The assessment provides an indication of value for which real estate taxes are then calculated upon to provide the revenue necessary for community operations. The assessment indicated for each property is established so that the tax burden is evenly and fairly distributed throughout the community. In short, a smaller, older home will result in less tax burden than a larger, newer home.
If your appraised value is higher than your assessed value, chances are that you’re paying less than your fair share in tax burden and should remain quiet. Inversely, if your assessed value is higher than your appraised value, you may be paying more than your fair share of tax burden and should speak up.