Why is the Assessed Value different from the Listing Price?
The assessment is an established property value done by MPAC (Municipal Property Assessment Corporation) determined by analysis of property sales in your community. In addition to sales, key features of every property are taken into consideration.
As many as 200 factors are considered when assessing the value. Five major factors (location, lot, living area, age of property (adjusted for any major reno’s and additions) and quality of construction. Other features that may affect value include: number of bathrooms, fireplaces, garages, pools, water frontage etc. All of this usually account for 85% of the value.
Local tax assessors don’t adjust the values they set on homes immediately in response to market changes.
Communities multiply the assessed value by the tax rate to calculate tax bills, so a lower assessed value means a lower bill. You have more reason to question the assessed value if you believe it’s higher than the home’s market value and you’re paying more than your fair share in taxes.