Understanding Assessed Property Value

May 8, 2019

Homeowners are often surprised to find that their property tax bill has increased. If the tax bill has increased for the home, then the value of the home has also increased. However, it is estimated that homes are often overvalued. Homeowners can appeal a home’s assessed value if they believe that their home has been overvalued to avoid paying higher property taxes. Although property assessments, market value, and appraisals all measure a home’s value, they do not always arrive at the same number. A property tax bill is based on the property’s assessed value.

Assessed Value Tax

Cities and municipalities tax a percentage of the assessed value of the home. Many municipalities also cap the amount the tax can increase so that homeowners are not unfairly burdened in a given year. The assessed value is set by a county auditor who arrives at the value through various analytical tools, including:

  • Replacement Cost: This determines how much it would cost to replace the house or to build the house again from ground up.
  • Income Value: An auditor will analyze the income value based on how much the house can be rented for.
  • Market Value: An auditor will analyze how much the house will sell for in the current market.

Appraised and Market Value

A home appraisal and market value measure a home’s value. An appraised value of a home is what similar homes in the area have sold for based on an independent evaluation by a licensed appraiser. An appraiser examines the home’s exterior and interior, looking for any defects, and analyzes the general condition. The appraiser will also look for improvements made to the home and renovations that can potentially add value. The lender uses the appraisal to determine whether the home has enough equity to warrant lending money to the property.

A home’s market value depends on what the market is willing to pay for the home. The market value is based on what the real estate agent gathers from recent sales of similar properties and other factors, such as the location of the property and future construction projects in the area. It also depends on what the purchaser is willing to pay for the home.

Delaware County Property Tax Appeals Lawyers at Eckell Sparks Help Homeowners Understand Their Assessed Value

If you have concerns about your property tax, do not hesitate to contact the Delaware County property tax appeals lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. We will review your tax bill and ensure that the assessment is based on accurate information and that you have utilized all available exemptions. Call us today at 610-565-3701 or contact us online for a free consultation. Located in Media and West Chester, Pennsylvania, we serve clients throughout Chester County, Delaware County, and Montgomery County.