What is the assessed value in real estate?

Assessed value in real estate refers specifically to the value assigned to a property for the purpose of determining property taxes, known as ad valorem taxes. This value is calculated by local governments based on various criteria including market conditions, property features, and comparable sales in the area. The assessed value may differ from the market value, as it is often set to align with budget needs of the local jurisdiction rather than reflecting current market trends.

The other options describe different types of values associated with real estate transactions but do not accurately define assessed value. For instance, market value refers to what buyers are willing to pay, the sale price is the final agreed amount during a transaction, and appraised value is an estimate prepared by a qualified appraiser based on property condition and comparable sales. These values can fluctuate based on market dynamics, while assessed value is a more stable figure established for tax purposes.