What is the primary type of value that assessors usually estimate?

The primary type of value that assessors usually estimate is market value. Market value is defined as the estimated amount for which a property should exchange on the date of the appraisal, typically in an open and competitive market. This concept reflects the price that a knowledgeable buyer would be willing to pay to a willing seller, assuming neither is under any pressure to act.

Assessors use this valuation as it provides a standardized method for determining taxes based on property worth, ensuring fairness and equity in how properties are valued across the board. Market value is essential for assessments because it is relatable to sales transactions, making it a reliable benchmark for property values in a given area.

Other types of value, such as assessed value, can directly reflect market value but may incorporate different methodologies or rates as established by jurisdictional guidelines. Investment value pertains more to the price an individual investor might be willing to pay and may vary greatly from market value depending on personal criteria or investment strategies. Net value is not a standard assessment term and isn't typically used in the appraisal process.