In real estate, an assessment is conducted by an authorized assessor to determine the value of your home for the purpose of knowing how much property tax you will have to pay. Once you understand how it is done and what specific details it involves, you will have a clear understanding of your property tax bill. You will know whether or not you are paying the right amount.
Your property tax is one of the most significant expenses that you will have to pay every year. Even if you have already finished paying off your mortgage, the responsibility to pay this tax regularly to your local government will still remain. Through assessment, you will know how your property tax is calculated and get a good idea of what your bill should be each year. Then, you can make the right budget, spot errors on your tax bills, and avoid costly surprises.
In some situations, a special assessment will be conducted on your property, where a charge may be levied upon you, as owner. Typically, this will be issued by your homeowners’ association to cover the cost of unexpected projects that exceed the set budget. Your local government may also issue this type of assessment if your property has benefitted from a specific neighbourhood development project, such as a new sewer system.
It is important to note that an assessment is not similar to an appraisal. While the former is used only to calculate amounts of property tax, the latter is done to determine a property’s market value.