What is the difference between assessed value and market value?

The assessed value of a property is the estimated monetary value of a property as determined by the government for taxation purposes. This value is used to calculate the amount of property tax due on the property. Generally, the assessed value of the property is lower than the market value, as assessed values are typically calculated using a standard formula. On the other hand, the market value of a property is the price a willing buyer and seller would agree on if the property were to be sold. It is determined by the current market conditions and can fluctuate depending on supply and demand. In South Dakota, the assessed value of a property is determined by the county assessor. The assessor estimates the value of a property, taking into consideration factors such as age of the building, its location, size, quality, and more. This value is then used to calculate the property taxes. It is important to note the difference between assessed value and market value when it comes to property taxes, as the two can be quite different. The assessed value is typically lower than the market value, though it can be higher in some cases. It is important to understand both values if you plan to buy a property in South Dakota, as the taxes will be based on the assessed value.

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