Your property is being appraised when a certified real estate agent or a qualified appraiser reviews your property and gives an estimated market value. This market value is then used to determine the amount of taxes you will owe on your property. If your property is sold at a higher cost than estimated in the appraisal, it will result in a deficiency.
When the assessor gives you the estimated market value for your property, don't believe the certificate of occupancy that is on file with the county. These numbers are never updated and so they will not reflect any recent increases in the market value of your home. On top of this, the tax rate that was used to calculate your property tax rarely changes.
Instead of using the current market value as the yardstick for determining your property tax liability, the assessor will use something called the Comparable Market Analysis (CMA). This is based on the prices that were paid for similar homes in the same area that are currently for sale. If the assessor determines that your home is worth more than what it is assessed, you will have a deficiency. The Assessor will order a property tax relief (usually a lower amount) and the deficiency will be repaid to you.
How Your Property is Appraised
Your Assessor will make two main decisions in determining your property tax liability: valuation and assessment. They base their decision on what your property is worth and how much you owe on your tax bill. In essence, the Assessor uses comparative market data to decide how much you should pay. But in order to do this they must take into consideration what your home is comparable to other homes that are for sale in the area. Comparative market data is data set down from previous sales of homes within the same community.
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When learning How Your Property Is Appraised, it's important to understand that they will look at several different factors to arrive at an accurate valuation. These factors can include the condition of your home, its selling price and its location. If these factors are not satisfactory for the Assessor, then they will look to other sellers in your area to see if they agree with their conclusions.
Knowing how your property is appraised is essential to understanding how property tax rates are figured. By getting an appraisal, you will know how much your property is worth, which will make it easier for you to ask for discounts on your tax bill. One way to ask for discounts on your property taxes is to show your property has been remodeled or improved in some way. If you've added a swimming pool to your home, for example, you may be able to get your property tax lowered by up to 20%. The better the condition of your home, the higher the value and thus, the lower your property tax rate.
There are many reasons why someone would want to know how your property is appraised, but perhaps the most common reason is so they can properly calculate their annual property insurance premiums. Insurance companies base their premiums on the risk of loss they pose to their customers, so by knowing how your property is appraised, they are able to calculate the amount they will charge their policy holders. It is up to you to request an appraisal on your property, but make sure you get it professionally done so it is based on true market value. You may also be required to have an appraiser look at your property if you are interested in buying or selling some type of structured insurance plan.
If you want to learn how your property is appraised, you can contact your local Assessor's office, tax assessor, or county clerk and ask them how your property is appraised. These office staff are legally obligated to answer any questions about your property and it is in their best interest to be as straightforward as possible. If you are having trouble understanding the process then you may want to consider hiring a property appraiser to take care of this for you. Most appraisers are very knowledgeable and will be able to give you very good information about how your property is appraised. You can usually find an appraiser via the internet, but be sure to research his/her background before you hire them.
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