Certified Pennsylvania Evaluator Practice Exam

Are market value and assessed values ever the same?

1. True

2. False

3. Only in certain conditions

4. Depends on the market

The correct answer is: True

Market value and assessed value can be the same under specific circumstances, which is why the response indicating that they can be the same is appropriate. Market value represents the price at which a property would sell in a competitive and open market, while assessed value is used primarily for taxation purposes and may be determined based on market trends or systematic evaluations. In certain scenarios, particularly when the local jurisdiction’s assessment techniques are closely aligned with current market conditions, the assessed value can mirror the market value. This could happen if the assessment rates are set well, if adjustments are made regularly to reflect market changes, or if the property has recently sold at a price that reflects the current market conditions. However, it is crucial to recognize that these values often differ due to varying methodologies in valuation, local tax regulations, or timing differences in market trends versus assessment cycles. So, while they can align under specific conditions, it is not a universal truth.