Boston Real Estate: Two Ways Your Home's Value is Determined

For those new to home ownership, or just in need of a refresher, let's look atthe concepts of assessments and appraisals. Although both concepts have to do with your home's worth, they are not the same thing. Nor do they serve the same purpose.When the city assesses your home's value, thatvalue determines what your property taxes will be.Property taxes are animportant source of revenue for all of Massachusetts' cities and towns. The property taxes you pay go toward things like transportation, education, parks, libraries, emergency services such as snow removal, and more.January 1 isthe property tax assessment date for each fiscal year.Appraisals are done for a different purpose. Lenders require an appraisal as an educated indication ofwhat a home is worth on the current market.Alender depends on the appraisal for information about the level of risk involved in either financing or refinancing a home loan. An appraisal that is in line with the loan amount requested is a kind of assurance that they won't lose out ifthe borrower defaults on the loan.The Boston Globe recently ran an article about the differences between appraisals and assessments. It explains why there is often a difference in stated values between the two methods of determining value:Read the Boston Globe's Appraisal Versus Assessment: What's the Difference?If you are lookingto buy a home or condo in Boston, heresmy Boston Real Estate Transaction Guide for home and condo buyers.Doyou have questions about buying or selling Boston condos or homes? In my 24+ years in the Boston real estate market, I havehelpedhundreds of people buy and sell Boston condos and homes. If you need assistance, pleasecall meat617-584-9790, or email me via the linkbelow.