What is an assessment?
An assessment occurs when an asset’s value must be evaluated for taxation. Some estimates are made periodically on specific types of property such as houses, while others may be done only once. For instance, homes are often valued every three or four years depending on their physical condition and equal values of surrounding residences.
The most successful form of assessment is executed on properties to determine the price of property tax owed to a municipality, government or county. These assessments are done by an assessor, who estimates the physical condition of a property, its overall value, land size, etc. The assessor compares these factors to other comparable properties in the same neighborhood. This assessment is then used to determine the tax that is payable by the property owner.
The information about a real estate is gathered by an assessor who determines the values of properties in that specific area. This information is used by local governments to set tax rates and to support the community’s annual budget. Sometimes the assessor will visit the property. Some states have specific requirements of how often they need to visit properties to establish their values. Most assessed values are determined by real estate data, which means an on-site visit may not always be required. In some districts, the assessed value is the market price, but in other areas, the market price is multiplied by an assessment rate to determine the assessed value.