Assessed Value
The value assigned to a property by the local tax assessor for property tax purposes. In NJ, assessed value should equal 100% of market value in revaluation years, but often diverges over time.
New Jersey municipalities are supposed to assess properties at 100% of true market value, but in practice, assessments often become outdated between revaluations (which occur on irregular cycles). The "equalization ratio" (or "Chapter 123 ratio") published annually by the NJ Division of Taxation shows the average ratio of assessed values to sale prices for each municipality. Assessed value differs from appraised market value — assessed values are mass-produced using statistical models, while appraisals are individual property analyses. The relationship between assessed and market value is a common point of confusion for property owners.
Related Terms
NJ Property Tax Appeal
The legal process by which a NJ property owner challenges their property's assessed value at the County Board of Taxation or NJ Tax Court.
Market Value
The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus..
Equalization Ratio (Chapter 123 Ratio)
The ratio of a municipality's average assessed values to average true market values, published annually by the NJ Division of Taxation.
More in NJ-Specific
View allNJ Board of Real Estate Appraisers
The state regulatory body under the NJ Division of Consumer Affairs that licenses, regulates, and disciplines real estate appraisers in New Jersey.
NJ Appraiser Licensing Tiers
New Jersey's four credential levels for real estate appraisers: Licensed Trainee, Licensed Residential, Certified Residential, and Certified General.
NJ Continuing Education Requirements
CENew Jersey requires licensed and certified appraisers to complete continuing education hours every two-year renewal cycle, including a mandatory USPAP update course and NJ-specific law module..
Supervisory Appraiser
A Certified Residential or Certified General appraiser who supervises a Licensed Trainee appraiser, providing mentorship, training, and oversight.