Property Valuation
In North Dakota, a property's 'assessed value' for tax purposes may differ from 'market value' because:
AThey are always the same value
BAssessment ratios, lag in reassessment cycles, and statutory limitations can cause assessed values to diverge from current market values✓ Correct
COnly commercial properties are assessed at market value
DAssessed value always exceeds market value
Explanation
Assessed value is the value assigned by the county assessor for tax purposes, which may be a percentage of market value (assessment ratio), may lag behind current market conditions, or may be affected by statutory assessment limitations. Market value is what a property would sell for on the open market.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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