Farmington Hills Michigan Appraised vs Assessed Prices home questions picture

Farmington Hills Michigan Appraised vs Assessed Prices

Thomas Gilliam assessment , Blog , Farmington Hills , farmington hills appraisel Leave a Comment

Appraised and assessed prices are regularly mistakened for each other. As a buyer or home seller, it is useful to understand how they differ. Details on Farmington Hills Michigan appraised vs assessed prices is provided below. Farmington Hills Michigan Appraised vs Assessed Prices home questions picture

What Are Assessed Prices

Localities require a property tax on residential real estate. The sum is derived from the tax rate multiplied by an assessed value of the real estate. Assessments are used only for measuring taxes and do not necessarily coincide with the market value. Every municipality formulates assessed value differently. They usually look at land area, interior features, and exterior features such as garages. Municipalities can re-evaluate real estate values and/or elevate the tax calculation at standard intervals.

What Are Appraised Prices

An appraisal is an analysis of the market value of a property by a licensed individual implementing specific calculation methods. Lenders obtain the services of appraisers to validate that a loan is not being provided for higher than the actual market value of a piece of property. It is a means of evaluating their investment given that they hold the majority of financial burdern until you pay down the loan. Appraisers always evaluate several comparable houses that sold recently within a certain vicinity. Since the market conditions will increase or decrease several times, comparing recent sales is important for a valid appraisal.

Details On Farmington Hills Michigan Appraised vs Assessed Prices

The market price of a listing is defined by what a home buyer is willing to pay, which will go up and down constantly based on factors such as the economy. Consumers should use caution when equating assessed figures with the market price of a home because they do not fluctuate the same. Some locations do not often change assessments and increase tax amounts instead. Only an appraisal can offer a true indication of present market price. This article regarding details on Farmington Hills Michigan appraised vs assessed prices was compiled by Tom Gilliam at RE/MAX Classic. For additional details on this and other real estate matters, contact Tom at 248-790-5594 or [email protected]

What is an Appraisal (tutorial)

 

Free Home Evaluation

The value of your home has most certainly changed since you bought it! Take a few seconds to fill out the form below and we'll prepare an expert market analysis of your home at no cost!
  • Tell us a little bit about your situation
  • Where is the property located?
  • Who can we contact with your completed market analysis?
About the Author
author photo

Thomas Gilliam

Facebook Twitter LinkedIn Google+

I'm a Professional Realtor for 17 years with RE/MAX CLASSIC in the Oakland County MI and the Metro Detroit area and love what I do. Real Estate is my passion... Exceeding your expectations is my goal!

Have a question not answered here? Ask us!

Your email address will not be published. Required fields are marked *