What is assessed value?

Assessed value refers specifically to the value determined by a public tax assessor with the purpose of calculating property taxes. This value is not necessarily reflective of the market value or the price that a property might fetch in a sale, but rather is a calculated figure that local governments use to estimate how much tax revenue can be generated from property taxes. This assessed value can differ from the fair market value, as it is often based on various factors including property size, location, and any improvements made to the property.

In contrast, the other options discuss different valuation methods: the market value determined by real estate agents reflects what the market is willing to pay; the value agreed upon by buyer and seller pertains to a negotiated price during a transaction; and the value based on construction costs focuses on expenses related to building the property rather than its current market or assessed value. Each of these valuations serves distinct purposes in real estate but is not intended for tax assessment.