How is "overassessment" defined in property valuation?

Overassessment in property valuation refers to a situation where a property's assessed value exceeds its fair market value. This occurs when the value assigned to a property by a local assessor is greater than what it could realistically sell for in the open market. The concept is essential for ensuring that property taxes are based on equitable values, which reflect the true worth of properties.

If a property is overassessed, it can lead to taxpayers paying more in property taxes than is warranted, resulting in potential financial burdens and inequities in the tax system. Accurate assessments based on market data are critical for fairness in property taxation, and understanding overassessment helps assessors ensure compliance with valuation standards and practices.