Assessed Value

Assessed value is the value assigned to a property by the local tax assessor's office, and it serves as the basis for calculating the property owner's annual tax obligation. This value is typically a percentage of the property's estimated fair market value, and the specific percentage (known as the assessment ratio) varies by jurisdiction.

For tax lien and tax deed investors, the assessed value provides an important data point during the due diligence process. While it should not be relied upon as the sole indicator of a property's worth, it offers a starting point for estimating value. In many cases, the assessed value is lower than the actual market value, which can work in the investor's favor when evaluating the potential return on a tax lien or tax deed purchase.

It's important to understand that assessed values are updated periodically (often annually or biannually) and may not reflect recent changes in market conditions, improvements to the property, or damage that may have occurred. Investors should use the assessed value as one of several tools in their analysis, alongside comparable sales data, physical inspections, and other market research.

Tax assessor records are typically available online through the county assessor's website. These records often include additional useful information such as the property's legal description, lot size, building square footage, year built, and recent sale history — all valuable data points for the savvy tax lien investor.