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What’s the difference between assessed and appraised value?

On Behalf of | Dec 13, 2022 | Commercial Property Tax Appeals |

As a commercial property owner, you have an invested interest (literally) in making sure that you maximize your profits and minimize your expenses. That means it’s automatically distressing to get hit with a property tax bill that seems ridiculously high.

The reality is that property owners and tax assessors seldom see eye-to-eye, especially when it comes down to how much a property is really worth. The assessor’s goal is, after all, to increase the tax revenues the government collects, while you only want to pay what is fair.

Property assessments are more “educated guesses” than factual

A lot of times the problem is that the assessed value of a property and its appraised value are two different things. The tax-assessed value may be roughly based on historical data on property values and a general market comparison to see how other, comparable properties are valued on the open market.

An appraisal, however, is much more accurate. During an appraisal, an expert looks at the current market conditions (which, when the market has been volatile, can be much more accurate than historical data that takes a long approach) and the actual state of the property itself.

This means that an appraisal of your commercial property can produce a dollar value that differs significantly from its assessed value. The assessor’s entire valuation process may take place online – meaning that they never even see your property in person. An appraiser, however, gets an in-depth look at any flaws in the property, including repairs that you’ve been putting off for a while or any other problems that impede its use or value.

If you’ve been hit with an unreasonably high tax bill for your commercial property, you don’t have to simply accept it. You can fight back with the right legal guidance.