QUESTION
Objective Question
_______ value may be lower for a property if you are an owner-occupant as opposed to a landlord.
Answer
( Option C)
Assessed Value
Solution
Assessed value is the value assigned to a property by local tax authorities for the purpose of
calculating property taxes.
Many jurisdictions provide homestead exemptions or preferential tax treatment for properties that serve as the owner’s primary residence. These benefits reduce the taxable (assessed) value for owner-occupants. Rental properties owned by landlords generally do not qualify for the same exemptions, so their assessed value (for tax purposes) is typically higher.
The other values do not systematically differ on the basis of owner-occupancy versus landlord ownership:
Market value is determined by open-market conditions.
Book value is an accounting figure.
Salvage value is the residual value at the end of useful life.
