Robin L  Conner
Robin L Conner, Keller Williams Preferred RltyPhone: (773) 220-3255
Email: [email protected]

Understanding the assessed value of your home

by Robin L Conner 11/06/2023

Whether you’re searching for your next home to purchase or considering selling your current property, your home’s assessed value is important to know through every stage of homeownership.


When tax assessed value matters & how to calculate it

The assessed value of your home is the estimate of your home’s worth in the current market, and this amount is what's used to determine your yearly property taxes. 


As a homeowner, knowing your assessed property value can help you budget your money more effectively for property taxes and understand if you have enough equity built up to borrow a home loan.


If you purchased your home years prior and are considering selling the property, the current value has most likely greatly increased, so knowing the assessed price of your home can help when deciding how much to list your home for. 


To calculate your home's assessed value, the market value of the home is multiplied by the decimal form of the assessment rate.  The formula for this is:

Assessed Value = Market Value x (Assessment Rate / 100)


Assessments versus appraisals

So, what’s the difference between assessment and an appraisal? The appraised value of your home is how much the property is worth on the market whereas the assessment is the number used by your local government to determine property taxes. 

During an appraisal, usually a state licensed appraiser is sent out by a mortgage lender to examine the property. During the examination they observe the foundation, structure, square footage, HVAC system and more. 

For assessments, your local government hires professional assessors to use data about the home, including previous years appraisals, to determine the worth of the property and how much taxes need to be paid on the property.  

The assessed value of your home is constantly changing due to market conditions. Staying up to date with this information can prepare you, regardless of what step you’re on in the journey of homeownership.



About the Author
Author

Robin L Conner

Robin has been a licensed Illinois Real Estate Broker since 2002 and has a genuine passion for real estate. She Joined the Keller Williams family in 2010, where she has been an active member of the Agent Leadership Council. She was one of the founding members of a Chicago area Keller Williams brokerage. Since opening, Robin has again been a valued member of the Leadership Team as well as assisting other agents reach their goals through training, coaching, and mentorship.