Property Valuation
What is 'assessed value' versus 'market value' in Illinois property taxation?
AThey are always the same; assessors use market value for taxation
BAssessed value is the value assigned by the county assessor for tax purposes, typically a percentage of market value; market value is the probable sale price✓ Correct
CMarket value is lower than assessed value by law in Illinois
DAssessed value is only used for commercial properties; market value for residential
Explanation
In Illinois, the county assessor assigns an assessed value, which is typically one-third (33.33%) of the property's fair market value. This assessed value is then multiplied by the equalization factor to get the EAV, which is used to calculate property taxes. Market value is the probable sale price in an open market transaction. The two values serve different purposes.
Related Illinois Property Valuation Questions
- In the cost approach, 'replacement cost new' differs from 'reproduction cost new' in that:
- In a buyer's market, an appraiser would expect to see:
- An over-improvement is a property improvement that:
- What is 'sensitivity analysis' in commercial real estate investment evaluation?
- When performing a comparative market analysis (CMA), a real estate agent is providing:
- In Illinois, an appraiser is estimating depreciation for a 15-year-old building with a total economic life of 60 years. What is the accrued depreciation percentage using the age-life method?
- What is 'land residual technique' in real estate appraisal?
- What is the 'highest and best use' concept in Illinois real estate appraisal?
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →