What type of value is typically estimated by an assessor?

The type of value that is typically estimated by an assessor is market value. Market value refers to the estimated amount for which a property should exchange on the open market between a willing buyer and a willing seller, when neither is acting under duress. This value is crucial for property taxation and assessments, as it reflects the current economic conditions and market trends that influence property sales.

Assessors analyze data from recent property sales, market conditions, and property characteristics to derive an accurate market value. This valuation process helps ensure that properties are assessed fairly and consistently, thereby guiding tax assessments and helping maintain equitable tax distribution among property owners.

While replacement value, assessed value, and fair value are important concepts in the field of property valuation, they serve different purposes. Replacement value considers the cost to replace a property with a similar one at current prices, assessed value refers to the value assigned to a property for tax purposes, which may or may not align with market value, and fair value often pertains to financial reporting and reflects the price at which an asset could be exchanged between knowledgeable parties in an arm’s length transaction.