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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.
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- Finance / Finance Definitions
- Life Skills / Finance Definitions
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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
Full Transcript
- 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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