What is a property’s assessed value?

A property’s assessed value is the valuation placed on a property by a government for tax purposes. This figure is used primarily to establish property taxes. It differs from market value, which is what a buyer is willing to pay for the property, and the agreed sale price, which can vary based on negotiations between the buyer and seller. The assessed value is typically determined through a systematic approach by the local tax authority, which considers factors such as the property’s location, size, and condition, rather than market fluctuations or personal negotiations. It serves as a standardized measurement that helps ensure fair taxation across different properties within a jurisdiction.