Certified Pennsylvania Evaluator Practice Exam

What value do assessors primarily focus on in property assessments?

1. Assessed Value

2. Market Value

3. Intrinsic Value

4. Investment Value

The correct answer is: Market Value

Assessors primarily focus on market value in property assessments because it reflects what a property would likely sell for in a competitive real estate market at a given time. Market value incorporates various factors, including location, current economic conditions, comparable property sales, and property features. This value is crucial for determining fair taxation and ensuring equity among property owners. While assessed value, intrinsic value, and investment value are important concepts in real estate, they each serve different purposes. Assessed value is typically a percentage of market value used to calculate property taxes, but it does not encompass the complete picture that market value provides. Intrinsic value pertains to the perceived or inherent worth of the property, which may not align with actual market conditions. Investment value reflects the value of a property from the perspective of a specific investor, taking into account their particular goals and situation, rather than the broader market context. Therefore, focusing on market value allows assessors to provide an accurate, objective assessment aligned with current market conditions.