In short - it doesn't. When your home receives a municipal value, it can be higher or lower than what your home's value actually is based on a Comparable Market Analysis (CMA). While assessors use real estate transaction data to determine municipal pricing, this is done without taking into account many features of your property which might add value. in turn, this value does not heavily impact what your home could actually sell for and is a representation which is mainly used for local property taxation purposes.
- Example: Let's say you bought a home for $300,000 and the Municipal value is $270,000. So why is it less, did i pay too much?? Maybe your home has a view of the river and an expensive Japanese water feature built into the walls, while other homes in the same area are facing a highway and next to a noisy commercial warehouse.
An assessor does not know about these unique aspects of your property which means it cannot be included as part of your individual assessment.