New Hampshire State Real Estate Practice Exam 2026 - Free Real Estate License Practice Questions and Study Guide

'Assessed value' specifically refers to the value determined by tax assessors for the purpose of taxation. This value is used to calculate property taxes owed by the property owner. It is typically based on various factors such as property size, location, and comparable sales in the area, but it does not necessarily reflect the current market value or the price at which the property might sell.

Tax assessors use a standardized method to evaluate properties within their jurisdiction to ensure that property taxes are fairly allocated. The assessed value is important for both the government in collecting taxes and for property owners in understanding their tax obligations. This concept distinguishes it from other values like market value, which is driven by current real estate market conditions, or selling price, which represents the actual transaction amount when the property changes hands. In summary, the assessed value is a critical figure in taxation and local government revenue determination.