what is assessed value 
assessed value is the dollar value assigned to a home or other piece of real estate for property tax purposes it takes into account the value of comparable properties in the area among other factors in many cases the assessed value is calculated as a percentage of the fair market value of the property understanding assessed valuethe assessed value of a home or other property is used only to determine the applicable property tax also known as an ad valorem tax assessed value takes into account the overall quality and condition of the property local property values square footage home features and market conditions many of these factors are derived from real estate data for the property s neighborhood and the surrounding area a government assessor is responsible for assigning a property s assessed value and for updating it periodically government assessors are usually designated by specified tax districts each district may have a different procedure for calculating assessed value however the basic process is largely the same depending on the state and locality assessors may be required to personally visit properties periodically for assessment purposes owners who want to dispute the assessed value placed on their property can request a reassessment which is a second evaluation of the property the assessed value may be lower for a property if you are an owner occupant as opposed to a landlord this is sometimes called a homestead exemption that doesn t affect the market value of the property but can reduce your property tax bill the assessed value is considered an accepted dollar value for your home and a reliable indicator of the home s worth 