How appraised and assessed values determine your property taxes.

When buying or selling a home, understanding the difference between appraised value and assessed value is crucial, as both play a significant role in the home's market value. Here's a breakdown of these terms to help clarify their impact on your real estate decisions.

The appraised value of your home is an estimate made at a specific point in time by a professional appraiser licensed by the state. This valuation is influenced by several factors, including:

1. Location

2. Condition

3. Improvements

4. Updates

5. Recent Sales

This value is typically used by lenders to determine how much money to lend to a buyer.

On the other hand, the assessed value is determined by your local municipality and plays a critical role in calculating your property taxes. This value can vary significantly from one town to another within the same county due to different taxation rates. For example, in Erie County, there are 28 different tax jurisdictions, each with its own rate.

The town you live in, such as Buffalo, Amherst, or Orchard Park, will have set assessed values that are used primarily for tax purposes. In places like Amherst, the variation can be even more granular depending on the school district, which significantly affects the tax rate. For instance, Cheektowaga Sloan is noted as having the highest school tax rate in all of Erie County.

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For homeowners and potential buyers, these values determine not just how much you can sell or buy a property for, but also how much you will pay annually in property taxes. Understanding the distinction and how each value is used can help you better manage your real estate investment and foresee your expenses.

For those interested in a detailed breakdown of tax districts in Erie County, or if you have specific questions about how these values affect your property, I'm offering a comprehensive report free of charge. The first person to reach out with the correct answer to which school district in Western New York has the highest taxes will receive a $50 gift card to their favorite restaurant. Don't hesitate to contact me via phone, text, or email for a copy of the report or to discuss further.

Navigating different aspects of real estate can seem daunting, but with the right information, you can make informed decisions whether you're buying, selling, or simply exploring your current home value.