Thursday, August 11, 2016

How Is a Home's Assessed Value Determined?

Property Tax Reduction Consultants
125 Jericho Turnpike, Suite 500 
Jericho, NY 11753
(516) 484-0654 or (631) 484-0654

Home Assessment | Property Value | P.T.R.C. Inc.

You don't have to be too familiar with property taxes to know about a home and property's assessed value (though it helps, as it's a part of the property tax equation) - if you've bought or looked for a home before, then you've probably heard the term. But even if you have heard it and used it in conversation, do you know how it's determined? No worries if not, today we're here to explain it.

Determining a Home's Assessed Value

Look at the comps.
Assessors begin their assessment of a home by taking a look at comps, which are similar properties located nearby one another in the neighborhood. In doing so, they take a look at recent sales to see what the market value is of those similar homes to get an idea of where the neighborhood stands.

Look at the home's features.
According to the International Association of Assessing Officers (IAAO), the size of your home and its layout have a lot to do with its value - things such as square footage, garages, number of rooms, and pools are all important here. If you've ever heard of someone's property value going up due a home improvement, such as a kitchen or bath remodel, this is why - assessors look for things like this!

Consider the economy.
Assessors also take the local economy into consideration when determining what a property is worth. Let's take a look at an example - if the local economy is strong, there may be more job opportunity, which makes that particular neighborhood a more desirable place to live. In this case, the assessed value of a home is likely higher, since there is more demand.

Consider infrastructure.
Nearby infrastructure is also important - if a new highway is being built, the surrounding neighborhood could see increases in property values since transportation and getting from point A to point B is a bit easier.

So why is your property's assessment so important? This is where property taxes come in - your property's assessment is one of the factors considered by local governments and school districts to figure out your property taxes. The official equation for calculating property taxes is your property's assessment X the tax rates for school districts, municipalities, courts and special districts. Thus, if your property's assessment changes at any time, your property taxes could go up or down.

Speaking of property taxes, do you have questions about what you're paying for your Long Island home? If so, contact the experts here at P.T.R.C. Inc.! We've ben specializing in reducing Long Island property taxes since 1990 and would be happy to answer any questions you may have.

To get in touch with a member of our team, please call (516) or (631) 484-0654 or email info@ptrc.com.

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