Assessed Property Value Vs. Total Land Value

Assessed property value is essentially the worth of your property compared with similar and surrounding properties, while total land value is the worth of your property, including all improvements and upgrades done to it.

Assessed property value is the estimated value of a property decided by a public tax assessor. This is based on a number of factors, including condition and surrounding property.

The tax assessor takes a uniform percentage of 100, where 100 equals fair market value, and gives your property a percentage rating. At 50 percent, with a fair market value of $100,000, your assessed property value would be $50,000.

A raised assessed property value does not necessarily mean increased taxes. Because assessed values are based on a number of determining factors, including neighborhoods and surrounding conditions, you could see a gain in assessed property value but still see a decrease in taxes if other property owners had a larger increase in value.

Total land value is the total value of the land, including any upgrades or improvements. This would be considered two separate sales on a tax form. The first would be the land value, and the second would be any buildings, renovations or improvements done to the land.

Since land is a fixed supply, its value is determined by market demand, which is constantly changing.